This  year’s  political  issue  in  National  affairs 


SHALL  WE  LEGISLATE  INTO  EXISTENCE  A 


* solidated  Bank-Credit  and  Money  Trust- 


\ 


TRUST  OF  TRUSTS 


An  Exposure  of  the  Scheme  Concealed  in  the  “McCleary  Bill; 
This  Bill  has  been  Agreed  to  by  the  Leaders  in  the  House, 
and  All  the  Republican  Nominees  are  Pledged  to  it. 

Wall  Street  is  Trying  to  Prevent  its  Discussion  Before  the  People. 

all  the  smaller  bankers  are  against  it,  and  so  is 

EVERY  MANUFACTURER,  TRADESMAN,  FARMER  - 
AND  WAGE-EARNER  WHO  EXAMINES  % 

THE  PROPOSED  LAW.  ' V 

: - — .%  %% 

George  h.  Shibley  'y 

of  the  American  Institute  of  Money  and  Prices;  * / 

author  of  “The  Money  Question.” 


Y , 


'.fl 


HOWARD  & WILSON  PUBLISHING  CO. 
CHICAGO,  ILL. 


Farmer’s  Reading  Circle  Library,  No.  25.  Quarterly,  $2.00  per  year. 

October  15,  1898. 

Entered  at  Chicago  Postoffice  as  second-class  mail  matter. 


•^1*1  CP  rtf  fhlQ  Nlimhpr  • Sin§le  c°Pies>  5 cents!  per  dozen,  postpaid,  15  cents; 

I iU  - U1  llild  lNuiliUCr  • per  hundred,  postpaid,  75  cents;  per  thousand  to  indi- 

idual  addresses,  postpaid,  §6.00;  express  F.  O.  B.,  Chicago,  $5. 00. 


Of  the  Proposed  Banking  Law  now  reported  in  the  House  and 
ready  for  passage  in  case  a Republican  Congress  is  elected,  Ch airmail 
Walker  of  the  Committee  on  Banking  and  a Republican,  says: 

“ The  Bill  is  very  bad  economics T It  would  result  in  “one  great  bar  k 
with  10,000  branches 

“ No  independent  local  bank,  managed  by  its  citizens , can  be  esta  b- 
lished in  the  town , and  if  one  is  there  it  must  go  out  of  business. 

In  times  of  political  excitement , “the  agent  of  the  parent  bank  knows 
the  politics  of  his  city  employer T 

“ 6,000,000  Republicans  are  more  or  less  suspicious  or  opposed  to 
national  banks T 

Photographic  reproductions  of  the  above  are  given  below,  page  j 


TABLE  OF  CONTENTS. 


Introductory.  page 

I.  Fundamental  Principles 5 

II.  The  Existing  System. 

(a)  The  average  of  prices  is  controlled  by  those  who 

control  the  volume  of  bank  credits , except  as 
the  President  of  the  United  States  uses  his 
discretionary  power  to  counteract  their  will ...  6 

(b)  The  machinery  whereby  the  bankers  control 

the  average  of  prices 6 

III.  The  Remedy:  The  Discretionary  Power  of  the  Presi- 
dent of  the  United  States  to  be  changed  so  that  he  will 
work  under  Fixed  Pules 7 

IV.  Result  of  President’s  Discretionary  Power: 

(a)  Fach  campaign  a fight  for  the  control  of  aver- 

age prices 8 

(b)  Defeat  of  Blame , Hancock , Hill  and  Bryan. . 8 

v.  What  the  Bankers  have  Accomplished 8 

VI.  How  the  Producing  and  Trading  Classes  can 

Conquer 9 

VII.  The  Existing  System.  (Continued.) 

(c)  Analysis  of  personal  profits  of  speculators, 

bankers  and  creditors 9 

(d)  Illustrations  of  how  the  controlling  banks  have 

secured  personal  profits. 

(1)  In  general 10 

(2)  National  bankers'1  panic  of  1881 10 

(3)  National  bankers'1  panic  of  1832-31}.  ( His- 

tory by  Prof.  Sumner  of  Yale;  Jackson's 
Prophecy ) 10 

(4)  Defeat  of  the  restoration  of  silver,  1878. . . 11 

(5)  Bankers'  panic  of  February,  1881} 11 

(6)  Nationalbankers' panic  of  1893 11 

(7)  The  second  act  in  the  great  conspiracy  in 

1893:  The  destruction  of  the  greenbacks.  14 

(8)  International  control  of  average  prices ...  14 

(9)  Philadelphia  manufacturers  coerced  in 

1896 17 

VIII.  The  Existing  Bank  Credit  and  Money  Trust. 

(a)  The  organization 17 

(b)  Motive  and  past  history 17 

(c)  Comparative  strength  of  bankers , 1878,  1895 

and  1898 18 

(d)  Bankers  act  through  an  Executive  Council  ....  18 

IX.  The  Proposed  Law  for  Extending  the  Privi- 
leges of  the  Banking  Trust  and  Further 
Consolidating  it: 

(a)  Control  of  average  prices:  Voters  to  give  paper 
money  to  the  Bank  Trust  to  issue  and  with- 
draw at  pleasure 19 

3 


TABLE  OF  CONTENTS. 


PAGE 

(b)  President  commanded  to  issue  gold  bonds  20 

(c)  Tremendous  discretionary  power  of  comptrollers.  20 

(d)  Gold  standard  of  falling  prices  continued 20 

(e)  Suspension  of  specie  payments  not  improbable . . 20 

(f)  $34-6,000,000  of  bonds  or  taxes 20 

(g)  $800,000,000  of  paper  money  to  be  given  to  the 

bankers 21 

(h)  Gold  certificates  withdrawn 21 

(i)  Usury  laws  to  be  evaded 21 

(j)  Taxes  to  be  evaded 21 

(k)  United  States  bonds  to  be  sold;  bank  depositors ’ 

security  lessened 21 

(1)  Consolidated  Bank=Credit  and  Money  Trust: 

One  Bank  with  10,000  Branches. 

(1)  Effect  of  “Branch  Bank”  system 21 

(2)  Admissions 22 

(3)  The  fallacy  in  bank  trusts’  argument. ...  22 

(4)  A trust  of  trusts 22 

(5)  Effect  of  a Consolidated  Bank  Credit  and 

Money  Trust 22 

X Congressional  Campaign  is  a “still  Hunt:” 
Conspiracy  to  Further  Enslave  the 
People. 

(a)  Proof 23 

(b)  The  power  of  the  conspirators 23 

(c)  Conspirators  are  thoroughly  organized  and  at 

work  with  millions  of  money 23 

(d)  Wall  Street  is  relying  upon  stealth  to  oxcomplish 

that  which  cannot  be  secured  if  discussion  is 
had 23 

(e)  Non-partisan  co-operation 24 

(f)  Old-time  Bepublican  sentiments 24 

Appendix: 

Photographic  Reproduction  of  Extracts  from 
Minority  and  Majority  Reports  on  Bill  for 

Bank  Trust 25 

Reprint  of  Leading  Sections  of  Proposed 
“Bank  Trust”  Law: 

Consolidated  bank-credit  and  money  trust 27 

Voters  to  create  money  and  give  it  to  the  bank  trust. . 27 

Greenbacks  to  be  retired — Bank  trust  to  be  given  two 

for  one 28 

A special  privilege : 28 

Bank  trust  to  pay  6%  annually  for  last  20  per  cent  of 

possible  issue 28 

People  to  pay  interest  on  the  guaranty  fund 28 

Gold  bonds  without  limit 28 

Tremendous  discretionary  power  of  comptrollers 28 

United  States  not  liable  for  bank  money 29 

Bank  trust  to  issue  and  withdraw  at  will  the  paper 
money  and  bank  credits. 

Statement 29 

Opinions  of  Blaine,  Logan,  Garfield,  Jefferson . 

Benton,  Chase,  Greeley,  and  Lincoln 30 

Sentiment  of  Republican  Press  up  to  Feb.,  1898.  30 

To-day  the  Republican  Press  is  Silenced 31 

Political  Outlook,  Oct.  8th 32 


SHALL  WE  LEGISLATE  INTO  EXISTENCE 


A TRUST  OF  TRUSTS? 


In  case  an  Anti-Greenback  Congress  is 
elected  there  will  be  enacted  into  law 
the  bill  on  Banking  which  now  stands 
on  the  calendar  in  the  House  ready  to 
be  voted  upon. 

If  this  law  is  passed  it  will  result  in  a 
Trust  of  Trusts,  in  other  words,  a Con- 
solidated Banking  and  Money  Trust. 

Its  powers  will  be  more  far-reaching 
than  the  mind  can  readily  grasp.  To 
make  it  clear,  so  far  as  is  possible,  I 
shall,  before  attempting  to  describe  it, 
set  forth  the  exist'ng  system  under  which 
the  big  speculators  control  the  average 
of  prices  and  thereby  “fleece”  the  small- 
er speculators  and  disorganize  all  pro- 
ductive and  trading  enterprises. 

PART  I.  FUNDUMENTAL  PRIN- 
CIPLES. 

The  Price  of  anything  is  the  amount 
of  money  which  it  exchanges  for.  On 
the  one  side  is  money,  and  on  the  other 
is  the  commodity. 

The  Average  of  Prices  in  the  United 
States  changes  through  the  different  pe- 
riods of  time.  This  “average  of  prices,” 
that  is  to  say,  the  relation  between  mon- 
ey on  one  side  and  on  the  other  “the 
things  against  which  it  exchanges,”  IS 
UNDER  THE  CONTROL  OF  THE  VOT- 
ERS through  their  representatives  in  Con- 
gress. It  is  this  way:  By  increasing  the 
volume  of  money  sufficiently,  the  aver- 
age of  prices  is  raised,  and  it  can  be 
lowered  by  withdrawing  a sufficiently 
large  quantity  of  money.  The  voters  then 
control  the  average  of  prices  in  the 
United  States.  This  is  the  great  underly- 
ing principle  which  we  should  recognize. 

If  it  is  claimed  that  “greenbacks”  and 
other  forms  of  paper  currency  are  not 
“money,”  then  we  have  only  to  add  to 
the  above  formula  the  words  “or  paper 
currency,”  that  is  to  say:  By  increasing 
the  volume  of  money  or  paper  currency 
sufficiently,  the  average  of  prices  is  rais- 
ed; and  vice  versa.  But  in  this  article 
I shall  include  in  “money,”  all  that  which 
is  a legal  tender,  either  in  whole  or  in 
part,  and  therefore  include  “greenbacks” 
and  “bank-notes.” 

The  second  principle  to  which  I call 
your  attention  is  that  fluctuations  in  the 
average  of  prices  are  a serious  evil  to 
society. 

And  thirdly,  fluctuations  in  the  “aver- 
age of  prices”  are  unnecessary,  for  the 
voters  through  the  laws  which  they  cause 
to  be  enacted,  eontfql  the  average  of 
prices.  All  that  is  required  is  a law  de- 
claring that,  "stability  in  the  average 


prices  promotes  the  general  welfare”  and 
which  shall  set  up  the  machinery  where- 
by this  stability  shall  be  attained  with- 
out further  legislation.  This  is  practica- 
ble as  will  be  shown  and  it  would  re- 
move the  money  question  from  politics. 

Modern  Invention  for  Measuring  Aver- 
age Prices. 

It  is  practicable  because  of  the  mod- 
ern invention  for  measuring  the  average 
of  prices.  This  is  simple  and  yet  it  is 
comparatively  new.  It  is  the  system  of 
Index  Numbers.  It  was  not  generally 
known  in  the  “greenback”  days  of  1865 
to  1879,  and  many  of  the  veterans  in  that 
fight  have  not  yet  grasped  its  import- 
ance. 

Now  that  the  invention  for  measuring 
the  average  of  prices  is  known,  the  estab- 
lishment of  a system  which  shall  keep 
this  average  practically  stable,  is  as  sure 
to  follow  as  was  the  discarding  of  the 
stage  coach  for  the  improved  methods  of 
travel.  This  fact  is  sensed  by  those  who 
oppose  a stable  average  of  prices  and 
they  carefully  refrain  from  referring  to 
index  numbers  except  occasionally  in 
dealing  with  wages. 

Let  us  turn  to  the  monetary  system 
that  is  in  force.  It  produces  fluctuations 
in  the  average  of  prices  because  of  the 
selfish  interests  of  a powerful  class.  To 
explain  this  system,  the  motives  of  its 
beneficiaries,  their  methods,  and  their 
present  scheme  for  extending  their  pow- 
er through  a Consolidated  Banking  and 
Money  Trust,  is  the  object  of  this  arti- 
cle. 

PART  II.  THE  EXISTING  SYSTEM 

It  has  been  shown  that  the  average  of 
prices  is  controlled  by  the  volume  of  mon- 
ey: Increasing  the  volume  of  money  suffi- 
ciently will  raise  the  average  of  prices, 
and  this  average  will  be  lowered  if  a 
sufficiently  large  quantity  of  money  is 
withdrawn  from  use.  But  the  average  of 
prices  is  affected  by  factors  other  than 
the  volume  of  money,  one  of  the  most 
important  of  which  is  Bank  Credits.  If 
the  volume  of  bank  credits  expands,  it 
will  raise  the  average  of  prices;  if  the 
volume  of  money  and  other  conditions 
remain  the  same,  and  on  the  other  hand 
if  bank  credits  collapse  or  are  wilfully 
withdrawn,  they  lower  the  average  of 
prices  unless  these  changes  are  counter- 
balanced by  changes  in  the  volume  of 
money  or  other  factors.  Now  in  the 
United  States  this  condition  exists;  Our 
Jaws  are  such  that 


6 


THE  AVERAGE  OF  PRICES  IS  CON- 
TROLLED BY  THOSE  WHO  CONTROL 
THE  VOLUME  OF  BANK  CREDITS, 
EXCEPT  AS  THE  PRESIDENT  OF 
THE  UNITED  STATES  USES  HIS  DIS- 
CRETIONARY POWER  TO  COUNTER- 
ACT THEIR  WILL. 

In  the  words  of  Prof.  Taylor  of  the 
University  of  Michigan  in  a paper  read 
before  the  American  Economic  Associa- 
tion, December,  1895,  showing  the  need 
of  an  elastic  volume  of  money:  “In  both 
England  and  the  United  States,  the  vic- 
tory has  remained  with  the  advocates  of 
a ‘safe,’  rather  than  an  elastic  curren- 
cy. In  the  recent  revival  of  agitation 
on  this  matter,  expert  opinion  has  almost 
without  exception  declared  for  elasticity. 
Yet  in  this  case,  as  in  the  former  contro- 
versies, the  idea  has  not  been  able  to 
gain  for  itself  legislative  approval.  * * * 
Bankers  are  private  citizens  in  quest  pri- 
marily, of  their  own  interests.” 

If  those  who  control  the  Bank  Credits, 
have  controlled  the  average  of  prices,  ex- 
cept as  the  President  has  exercised  a dis- 
cretionary control  of  it,  the  question 
arises  in  each  person’s  mind,  What  is  the 
Machinery  whereby  the  Bankers  have  op- 
erated, and  what  is  their  Motive? 

THE  MACHINERY  WHEREBY  THE 
BANKERS  CONTROL  THE 
AVERAGE  OF  PRICES. 

Under  our  monetary  and  banking  sys- 
tem and  those  which  have  always  been 
used  in  this  country,  Bank  Credits  have, 
over  periods  of  time  varying  from  two 
days  to  several  years,  risen  and  fallen 
without  being  offset  by  changes  in  the 
volume  of  money  except  in  rare  in- 
stances, and  as  a result  THERE  HAVE 
BEEN  CYCLES  OF  RISES  AND  FALLS 
IN  THE  AVERAGE  OF  PRICES.  The 
exceptions  have  been  when  the  President 
of  the  United  States  has  occasionally 
stepped  in  and  put  money  into  circulation. 

The  Defect. 

The  particular  point  which  I make  is 
that  the  law  has  prescribed  a maximum 
of  bank  credits  but  it  does  not  declare 
that  when  the  bank  credits  collapse  or 
are  wilfully  withdrawn  by  the  money 
power  there  shall  come  forth  another  me- 
dium of  exchange — money— to  take  its 
place.  I will  express  it  another  way: 
The  history  of  bank  clearings  shows  that 
the  maximum  of  bank  credits  which  the 
law  permits  has  been  attained  only  for 
brief  periods  and  at  other  times  it  has 
fluctuated  between  the  high  point  and 
lower  points  WITHOUT  BEING  COUN- 
TERBALANCED by  changes  in  the  vol- 
ume of  money. 

Here  is  an  example:  In  1893  bank 

credits  were  contracted  so  that  the  vol- 
ume during  the  first  week  of  December 
was  but  % of  what  it  was  during  the 
first  week  in  March  while  the  volume  of 
money  in  circulation  decreased  very 
greatly,  there  being  a “plethora”  of  mon- 
ey in  the  banks.  In  other  words,  the 
bank  loans  shrunk  3714  per  cent  of 
their  volume  while  the  volume  of  money 
used  in  trade  also  decreased.  The  result 


was  that  the  average  of  prices  was  much 
lower  during  the  first  week  of  Decem- 
ber than  it  was  during  the  first  week  of 
March.  But  had  the  law  been  such  that 
the  tendency  to  contraction  of  bank 
credits  would  have  been  offset  by  the  ex- 
pansion of  another  medium  of  exchange, 
namely  the  issuance  of  money  in  ex- 
change for  government  bonds,  the  ten- 
dency to  a fall  in  the  average  of  prices 
would  have  been  counterbalanced. 

Cycles  of  Rising  and  Falling  Prices. 

Now  why  is  it  that  we  have  had  cy- 
cles of  rising  and  falling  prices  when 
we  could  have  had  stable  ones?  Who  has 
profited  by  keeping  the  law  so  that  the 
changes  in  bank  credits  were  not  coun- 
terbalanced? Prof.  Taylor,  of  Michigan 
State  University,  has  answered  it  and  I 
have  quoted  to  you  his  verdict.  It  is 
that  an  elastic  currency  has  failed  to  se- 
cure legislative  approval  because  “the 
bankers  are  private  citizens  in  quest  pri- 
marily of  their  own  interests.”  It  is  the 
bankers  who  have  fought  all  bills  which 
have  proposed  to  put  in  the  hands  of  the 
government  the  control  of  the  average  of 
prices  under  fixed  rules. 

Power  of  the  Bankers. 

Under  our  monetary  and  banking  sys- 
tem the  changes  from  periods  of  expand- 
ing bank  credits  to  those  of  contracting 
credits,  and  vice  versa,  are  brought  about 
by  the  banks;  and  a few  of  the  large 
banks  of  New  York  “set  the  pace.”  They 
fix  the  bank  rate  in  the  United  States 
except  as  the  President  of  the  United 
States  interferes  by  putting  money  into 
circulation  or  withdrawing  it.  These 
controlling  banks  are  largely  owned  in 
Europe. 

While  the  banks  are  not  always  able 
to  expand  their  credit  when  they  de- 
sire owing  to  other  conditions  being  at 
times  capable  of  deterring  business  en- 
terprises, they  certainly  have  the 
power  to  CONTRACT  THEIR  LINES  OF 
CREDIT  WPIENEVER  THEY  CHOOSE 
TO  DO  SO  and  history  shows  that  FOR 
THIS  PURPOSE  THEY  COMBINE 
WHENEVER  IT  PAYS  THEM  TO  DO 
SO.  The  combination  may  be  only  of  the 
great  banks  or  it  may  be  a widespread 
combination,  instances  of  which  I shall 
shortly  give  to  you.  Here  however  I 
wish  to  set  forth  the  usual  method  where- 
by an  undue  expansion  of  bank  credits 
is  checked. 

Method  of  Checking  Credit  Expansion* 

Under  our  monetary  and  banking  sys- 
tem when  the  bank  credits  of  the  gold- 
price  world  are  expanding,  there  is  no 
way  whereby  it  is  usual  to  counterbal- 
ance this  expansion  by  withdrawing 
money,  and  as  the  expansion  of  bank 
credits  cannot  go  on  indefinitely  it  fol- 
lows that  the  bankers  must  stop  it.  This 
is  done  by  the  “controlling  banks.” 

Undue  Advantage  of  Bank  Directors. 

The  directors  of  these  banks,  shaping 
as  they  do  the  policies  of  their  respective 
institutions,  KNOW  OF  THE  CHANGES 
IN  CREDITS  IN  ADVANCE  OF  THE 
BUSINESS  WORLD.  As  the  changes  in 
credits  result  in  changes  in  prices,  except 


7 


as  counterbalanced  through  the  Presi- 
dent of  the  United  States  putting  money 
into  circulation  or  withdrawing  it,  it  fol- 
lows that  the  directors  of  these  control- 
ling banks  have  an  advantage  over  those 
who  are  not  on  “the  inside.” 

Result  of  Bankers’  Control  of  Average 
Prices. 

But  this  advantage  over  other  specula- 
tors is  of  no  consequence  as  compared 
with  the  direful  effects  upon  production 
and  distribution  which  flow  from  the 
fluctuations  in  average  prices.  “Falling 
prices”  espeeially  are  a most  terrible  en- 
emy to  all  human  beings  who  are  not 
speculators,  creditors  or  have  “fixed  in- 
comes.” “Rising  prices”  while  much  bet- 
ter than  falling  prices,  are  not  so  good 
for  society  as  a stable  average  provided 
the  falls  in  prices  have  been  restored 
somewhat. 

PART  III.  THE  REMEDY. 


The  remedy  for  fluctuations  in  the  av- 
erage of  prices  is  very  simple:  The  vot- 
ers have  only  to  change  the  law  so  that 
the  bank  directors  shall  no  longer  con- 
trol the  average  of  prices.  To  do  this  it 
is  only  necessary  that  the  discretion- 
ary power  of  the  President  of  the  Unit- 
ed States  be  changed  so  that  he  will 
work  under  Fixed  Rules. 

But  to  this  the  great  speculators  and 
big  creditors  object. 

The  Objections  of  the  Big  Speculators 
and  Great  Creditors. 

In  the  words  of  Prof.  Laughlin  in  a 
debate  before  the  Sunset  Club  of  Chica- 
go, December  6th,  1894  (Page  90  of  its  pro- 
ceedings), “THE  GOVERNMENT 
SHOULD  NOT  ISSUE  NOTES  (paper 
money),  because  it  puts  it  in  the  danger- 
ous position  of  INFLUENCING  AND 
CONTROLLING  PRICES  AND  THE 
MONEY  MARKETS.” 

Here  he  “lets  the  cat  out  of  the  bag;” 
I ask  to  whom  is  it  dangerous  that  the 
government  should  directly  control  the 
average  of  prices?  Especially  when  it  is 
proposed  to  keep  the  average  of  prices 
stable  through  a system  which  is  auto- 
matic in  so  far  as  voters  and  congress 
are  concerned.  Is  it  dangerous  to  the 
producing  and  trading  classes  who  are 
injured  by  fluctuations  in  the  average  of 
prices?  Or  is  it  dangerous  to  the  unholy 
profits  secured  by  the  controlling  bank- 
ers through  their  control  of  the  average 
of  prices?  The  money  question  is  simply 
this:  Which  is  the  better  way  to  issue 
the  paper  money;  shall  the  law  be  such 
as  to  keep  a practically  stable  average 
of  prices  or  shall  the  law  be  framed 
with  the  object  of  delegating  to  one  class 
the  control  with  the  certainty  that  the 
result  will  be  cycles  of  rises  and  falls 
in  average  prices  with  all  the  evils  to 
society  which  this  implies? 

It  would  be  no  innovation  for  the  gov- 
ernment to  to  keep  the  average  of 
prices  stable 


Direct  Governmental  Control  of  Average 
Prices  Is  No  Innovation. 

Our  government  has  repeatedly  put 
forth  paper  and  metallic  money  to  ease 
the  money  market  and  thus  keep  the 
average  of  prices  from  falling  and  it  has 
also  kept  money  piled  up  in  the  treasury 
when  it  could  have  put  it  into  circula- 
tion. By  keeping  money  out  of  circulation 
it  has  forced  down  the  average  of  prices. 
I will  quote  a few  examples: 

Only  last  month  the  government  paid 
interest  on  bonds,  months  in  advance  of 
the  time  it  is  due  in  order  to  get  money 
out  of  the  treasury  and  into  circulation. 
The  government  is  also  purchasing  bonds 
in  order  to  put  money  into  circulation, 
and  to  the  extent  of  twenty-five  million 
dollars. 

In  1890  similar  occurrences  took  place. 
In  the  words  of  President  Harrison  in 
his  annual  message  to  Congress  “The  ef- 
forts of  the  Secretary  to  increase  the  vol- 
ume of  money  in  circulation,  by  keeping 
down  the  Treasury  surplus  to  the  lowest 
practicable  limit,  have  been  unremitting 
and  in  a very  high  degree  successful. 
* * * The  increase  of  money  in  circu- 
lation during  the  19  months  has  been 
in  the  aggregate  93  million  dollars  or 
about  one  dollar  and  a half  per  capita, 
and  of  this  increase  only  7 million  dol- 
lars was  due  to  the  recent  silver  legisla- 
tion.” 

In  1881  the  bankers  by  concerted  action 
withdrew  credits  and  forced  a panic  and 
the  government  fought  them,  to  some  ex- 
tent, by  putting  money  into  circulation 
through  the  purchase  of  bonds.  In  the 
words  of  Appleton’s  Annual  for  1881,  page 
189,  “The  national  bankers  of  New  York 
City  acting  in  concert,  brought  Wall 
Street  to  the  extreme  verge  of  a panic. 
The  tone  of  the  money  market  was  only 
partially  restored  by  an  order  of  the  Sec- 
retary of  the  Treasury  for  the  redemp- 
tion of  25  million  dollars  of  bonds  on 
presentation.” 

In  1893  the  bankers  attempted  to  force 
a panic  to  secure  legislation  and  they 
were  not  foiled  by  the  President — he 
chose  to  help  them. 

President  Should  Work  Under  Fixed 
Rules. 

Now,  why  should  this  discretion  be  left 
with  the  President  of  the  United  States'? 
Why  shouldn’t  there  be  Fixed  Rules  for 
the  exercise  of  this  tremendous  power? 
We  ask  that  there  be  a rule  command- 
ing the  President  through  his  Secretary 
of  the  Treasury  to  daily  tabulate  the 
prices  of  specified  commodities  in  speci- 
fied markets  and  that  the  sum  total  of 
these  prices  be  kept  practically  stable. 
When  credits  are  being  withdrawn,  the 
volume  of  money  should  be  expanded  by 
purchasing  bonds,  and  when  the  reverse 
occurs  in  the  volume  of  credits,  the  mon- 
ey should  be  withdrawn  by  reselling  some 
of  the  bonds.  In  other  words,  we  ask 
that  the  DISCRETION  of  the  President 
to  manipulate  the  average  of  prices  shall 
be  done  away  with,  and  that  he  be  COM- 
MANDED to  keep  a stable  average. 
Senator  John  Sherman  on  the  floor  of 


the  Senate  in  1868  declared  that  “the  con- 
trol of  the  currency  should  not  be  left 
to  the  discretion  of  any  single  officer.” 
(Blaine’s  Twenty  Years  of  Congress,  Vol. 
II.,  page  331.) 

PART  IV.  RESULT  OF  PRESI- 
DENT’S DISCRETIONARY 
POWER, 

Each  Campaign  a Fight  for  the  Control 
of  Average  Prices. 

To  leave  to  the  President  a discretion 
in  the  matter,  makes  the  nomination  of 
candidates  for  that  office  a fight  for  the 
control  of  the  average  of  prices,  and 
after  the  selection  of  candidates  is  made, 
in  case  one  of  them  is  not  favorable  to 
Wall  Street,  he  is  fought  by  them,  tooth 
and  nail.  Examples,  both  as  to  the  fight 
over  the  nomination  and  the  election,  are 
as  follows: 

Defeat  of  Blaine,  Hancock,  Hill  and 
Bryan. 

The  nomination  of  Blaine  was  fought 
by  Wall  Street  in  1876,  in  1880,  and  1884. 
They  defeated  his  nomination  twice  and 
after  he  was  nominated  in  1884  they  de- 
feated his  election.  The  data  to  show 
this  I have  put  forth  in  a book.  In  1880 
the  election  of  Hancock  was  defeated  by 
Wall  Street.  This  is  shown  in  a letter 
from  Garfield  to  Sherman  written  soon 
after  Hancock’s  defeat  occurred:  “The 

distrust  of  the  Solid  South  and  of  ad- 
verse financial  legislation  have  been  the 
chief  factors  in  the  contest,”  wrote  Gar- 
field. New  York  State’s  electoral  vote 
was  cast  for  Garfield,  but  in  1884  New 
York  was  carried  against  Blaine  through 
the  efforts  of  Wall  Street.  In  1896  the  con- 
test over  the  nomination  of  the  Demo- 
cratic candidate  was  terrific,  and  as  the 
nominee,  Mr.  Bryan,  did  not  favor  Wall 
Street  interests  he  was  defeated.  The 
year  before  this  occurred  the  president 
of  the  New  York  State  Bankers’  Asso- 
ciation in  a speech  before  the  Bankers’ 
Club  of  Chicago,  gloated  over  the  power 
of  the  bankers  in  legislation  and  poli- 
tics and  concluded  with  this  statement: 
“The  politician,  high  or  low,  who  to-day 
turns  from  the  straight  course  of  sound 
money  and  the  gold  standard,  stabs  dead 
once  for  all  his  every  chance  for  politi- 
cal success,  ESPECIALLY  IF  HE 
WANTS  TO  BE  PRESIDENT.” 

How  long,  oh  my  countrymen,  will  you 
permit  the  selfish  interests  of  the  big 
speculators  and  great  creditors  to  control 
the  average  of  prices?  How  long  will 
you  permit  them  to  “fleece”  you  while 
you  have  in  your  hand  the  ballot  and  are 
permitted  to  cast  it  and  have  it  count- 
ed? 

Mark  well  the  query  “while  you  are  per- 

mitted to  cast  it  and  have  it  counted.” 


PART  V.  WHAT  THE  BANKERS 
HAVE  ACCOMPLISHED. 

Presidential  Elections. 

Blaine  was  elected  in  1884,  but  the  bal- 
lots were  not  counted  that  way.  Murat 
Halsted,  in  a magazine  article,  testifies 
that  he  went  to  New  York  in  Blaine’s 
interest  and  advised  him  that  HE  WAS 
ELECTED  BUT  THE  REBELLIOUS 
POWER  WAS  SUCH  THAT  IT  WOULD 
BE  USELESS  TO  OPPOSE  IT.  At  the 
next  national  election  both  of  the  nomi- 
nees were  satisfactory  to  Wall  Street: 
The  1888  platform  of  the  Republican  par- 
ty specially  invited  back  “the  men  who 
abandoned  the  Republican  party  in  1884.” 
Four  years  later  the  fight  opened  in  New 
York  State  over  the  nominations.  On 
this  point  we  are  fortunate  in  having 
some  “inside”  history. 

“Inside”  History. 

Banker  Salomon  of  New  York  City,  a 
member  of  one  of  the  leading  Interna- 
tional banking  houses  in  New  York  City, 
in  an  article  in  the  July  Forum,  1895, 
admits  what  every  voter  should  know. 
He  tells  us  that  the  nomination  and  elec- 
tion of  Governor  David  B.  Hill  would 
have  resulted  in  free  silver,  that  is  to 
say,  the  restoration  of  the  average  of 
prices  and  a fixed  par  of  exchange  in 
international  trade.  To  prevent  the  free 
coinage  of  silver,  says  Banker  Salomon, 
“was  what  inspired  vast  numbers  of  men 
to  go  into  the  party  organization  to  con- 
test the  nomination  of  Mr.  Hill.”  They 
furnished  the  “sinews  of  war!”  as  he 
terms  it,  which  defeated  the  nomination 
of  Gov.  Hill  and  placed  Grover  Cleveland 
at  the  head  of  the  ticket. 

Wall  Street  “Punch  and  Judy”  Show. 

Banker  Salomon’s  admissions  further 
show  that  the  campaign  as  between 
Cleveland  and  Harrison  was  a Wall 
Street  “Punch  and  Judy”  show,  for  he 
declares,  and  I quote  his  words,  “It  was 
well  understood  that  a Reform  of  uie 
Tariff  was  to  be  the  Nominal  Issue  of 
the  Campaign  and  that  all  the  changes 
were  to  be  rung  on  that  theme.” 

There  you  have  it:  That  is  the  way  the 
American  voters  are  handled  when  Wall 
Street  can  control  both  of  the  parties. 
But  when  it  cannot  do  so  it  fights.  And 
the  way  it  fought  in  1896  is  present 
in  the  mind  of  each  of  you.  The  $16,000,- 
000  campaign  fund  furnished  by  the  mem- 
bers of  the  Bankers’  Trust  with  Mark 
Hanna  as  chief  dispenser,  will  never  be 
forgotten  by  men  who  believe  in  a free 
ballot  and  a fair  count. 

Do  not  feel  sure  then  that  you  can  read- 
ily wrest  from  Wall  Street  the  control 
of  the  average  of  prices.  Remember  the 
history  which  I have  related  and  which 
demonstrates  their  tremendous  power  and 
unscrupulous  disregard  for  popular  gov- 
ernment. 

The  Threats  of  1896. 

During  the  campaign  of  1896  the  threat 
was  made  repeatedly,  that  in  case  there 
should  be  elected  and  seated  a president 


9 


and  a congress  pledged  to  the  overthrow 
of  the  existing  monetary  system,  that 
nevertheless  the  overturning  of  this  sys- 
tem would  not  occur.  Banker  Clews  bold- 
ly proclaimed  this  in  a written  statement 
which  was  intended  for  publication  and 
which  was  published  tnroughout  the 
length  and  breadth  of  the  land.  The  New 
York  Sun  said  the  same  thing  but  in  a 
more  covert  way.  This  was  copied  in 
the  Chicago  Tribune,  at  least.  Harper’s 
Weekly  also  put  forth  a similar  state- 
ment in  a more  veiled  manner  than  the 
New  York  Sun  had  done.  Mr.  Lauter- 
back,  Chairman  of  the  Republican  Com- 
mittee in  New  York  City,  boldly  declar- 
ed “We  may  not  submit”  and  Theodore 
Roosevelt  is  reported  to  have  made  a 
statement  nearly  as  bad. 

Many  people  believe  that  the  rule  of 
the  Majority  is  a thing  of  the  past.  The 
following  is  an  illustration: 

Professor  Plelin’s  Despair. 

“We  must  remember  that  we  are  at- 
tempting to  maintain  a democratic  form 
of  government  at  a time  when  THE 
CONDITIONS  FAVORABLE  TO  DE- 
MOCRACY HAVE  LONG  GONE  BY. 
We  can,  therefore,  only  expect  class  rule 
in  every  direction,  through  democratic 
forms.”  Thus  spake  Dr.  Carl  C.  Plehn, 
Assistant  Professor  of  History  and  Po- 
litical Science,  University  of  California, 
in  a letter  to  the  writer,  October  19th, 
1897,  and  in  which  he  gave  permission  to 
publish.  And  he  further  said:  “I  should 
infinitely  prefer  to  see  our  Professors 
dominated  by  the  trustees  of  our  Amer- 
ican colleges  to  having  them  pander  in 
any  way  to  the  ignorance  and  passion  of 
‘ye  multitude’  or  of  their  chosen  repre- 
sentatives.” 

PART  VI.  HOW  THE  PRODUCING 
AND  TRADING  CLASSES 
CAN  CONQUER. 

In  my  opinion  it  is  not  true  that  “The 
conditions  favorable  to  democracy  have 
long  gone  by.”  Popular  Government  is 
not  so  badly  throttled  as  it  was  at  the 
close  of  the  last  century. 

The  Year  1 800  Compared. 

“Just  one  hundred  years  ago,  under  the 
presidency  of  John  Adams,  a Sedition 
bill  was  passed  by  Congress,  allowing 
the  arrest,  fine  and  imprisonment  of  any 
man  who  criticised  the  acts  of  the  party 
in  power.  Under  this  Act  a dozen  of  the 
ablest  editors  of  the  United  States  were 
imprisoned;  one  Congressman,  stumping 
for  re-election,  was  arrested  for  criticis- 
ing the  President,  and  held  for  four 
months  in  a cold  guard  house,  where  his 
'health  was  seriously  damaged,  besides 
being  compelled  to  pay  a fine  of  $1,000. 
It  was  the  culmination  of  an  era  of  strug- 
gle, on  the  part  of  autocracy  and  aris- 
tocracy, to  get  entire  control  of  the  new- 
born republic.  Free  suffrage  was  held  to 
be  well  enough,  provided  all  the  votes 
were  cast  for  the  select  few,  who  by  edu- 
cation and  wealth  held  themselves  to  be 
“the  Best.”  Thomas  Jefferson  put  an 
end  to  all  of  this,  by  organizinig  the 
common  people  into  a great  party,  which 


in  1800  elected  him  president.”  (E.  P. 
Powell  in  “The  New  Unity,”  Sept.  29, 
1898.) 

And  to-day  we  are  at  the  culmination 
of  anoth.er  era  of  autocracy.  Now  it  is 
the  owners  of  aggregated  wealth  who  op- 
pose the  equality  of  opportunity  upon 
which  Progress  is  based.  But  the  power 
of  wealth,  tremendous  as  is  its 
control  of  the  producing  and  trad- 
ing classes,  must  and  will  bow 
in  acquiescence  to  their  verdict  WHEN- 
EVER THEY  GET  TOGETHER  IN  A 
COMPARATIVELY  SOLID  PHALANX. 
And  if  they  but  agree  that  stability  in 
the  average  of  prices  is  just,  they  can 
put  that  principle  into  execution  in  spite 
of  the  opposition  of  the  big  speculators 
and  great  creditors  who  profit  by  a fluc- 
tuating and  sinking  price  level.  If  the 
producing  and  trading  classes  will  but 
agree  upon  the  principle,  that  stability 
in  the  average  of  prices  is  just  and  there- 
fore that  to  the  president  shall  no  longer 
be  left  the  discretion  to  regulate  it  as 
he  may  see  fit,  the  great  clouds  of  im- 
pending catastrophe  which  overhang  the 
land,  will  be  dispersed,  and  civilization 
will  not  be  destroyed  by  aggregated 
wealth. 

I am  an  optimist  and  believe  that  the 
people  will  catch  glimpses  of  the  truth 
through  the  latticed  fallacies  with  which 
wealth  is  fighting  the  truths  concerning 
itself.  We  cannot  at  this  time  consider 
these  fallacies,  but  shall  state  the  ex- 
isting order  of  things.  Its  main  features 
are  so  broadly  apparent  that  there  is  no 
mistaking  them. 

PART.  VII.  THE  EXISTING  SYS- 
TEM (CONTINUED). 


Analysis  of  Personal  Profits  of  Specula- 
tors, Bankers  and  Creditors. 

The  criterion  whereby  business  is  con- 
ducted is  Personal  Profit.  And  this  is 
the  motive  of  those  who  control  the  banks 
and  through  them  have  controlled  the 
average  of  prices. 

These  “Personal  Profits”  include: 

The  interest  which  is  made  from  put- 
ting forth  the  paper  money  which  the 
voters  through  their  representatives  fur- 
nish to  the  banks  for  loaning  out  at  in- 
terest. 

A second  source  of  personal  profit  is 
the  higher  rate  • of  interest  which  they 
are  able  to  secure  .on  all  their  loans  ow- 
ing to  the  destruction  of  capital  through 
the  disorganization  of  industry  which 
follows  upon  the  heels  of  falling  prices. 
One  reason  that  Postal  Savings  Banks 
are  fought  is  that  they  would  tend  to 
lower  the  interest  rate  through  the  ac- 
cumulation of  wealth. 

A third  source  of  personal  profit  is  to 
creditors.  Since  1873  the  net  increase  in 
the  purchasing  power  of  money  has  been 
nearly  100  per  cent;  in  other  words,  the 
average  prices  of  products  have  been 
made  to  fall  50  per  cent. 

The  profits  from  speculation  in  stocks, 
bonds,  produce  and  other  property  is  an- 
other source  of  profit  to  those  who  con- 
trol the  average  of  prices. 

A fifth  source  of  profit  is  from  the  con- 
trol of  legislation.  This  includes  the 


10 


keeping  of  the  special  privileges  already 
secured  and  the  obtaining  of  further  spe- 
cial privileges. 

The  foregoing  is  in  addition  to  the  prof- 
its which  flow  from  legitimate  banking. 

ILLUSTRATIONS  OF  HOW  THE 
CONTROLLING  BANKS  HAVE 
SECURED  PERSONAL 
PROFITS. 

There  are  many  notable  examples  of 
how,  under  the  existing  system  the  vol- 
umes of  bank  credits  have  been  controll- 
ed by  the  great  banks  for  the  purposes 
of  speculation,  high  interest,  and  the 
securing  of  legislation  itself.  I shall  not 
mention  cases  where  it  was  simply  a 
master  of  speculation  as  they  occur  ev- 
ery year,  and  in  most  cases  are  almost 
unnoticed  even  by  business  men.  The 
Influencing  of  Legislation,  however,  is  a 
more  grave  indictment  and  I bring  forth 
some  of  the  evidence: 

NATIONAL  BANKERS’  PANIC  OF 
1 8S1 . 

Early  in  1881  a bill  detrimental  to  the 
interests  of  national  banks  had  passed 
the  House,  was  concurred  in  by  the  Sen- 
ate with  unimportant  amendments  and 
sent  back  to  the  House.  Then  there  oc- 
curred a concerted  withdrawal  of  cred- 
its by  the  national  banks.  They  not  only 
withdrew  credits  but  withdrew  $18,000,- 
000  of  money  from  circulation  and  depos- 
ited it  with  the  treasury.  Commenting 
upon  this  fact,  Secretary  of  the  Treas- 
ury Windom  in  his  annual  report  recom- 
mended that  the  national  banks  be  pro- 
hibited from  withdrawing  their  circula- 
tion, except  after  giving  timely  notice. 
President  Arthur  in  his  annual  message 
concurred  in  the  recommendations  saying: 
“Such  legislation  would  seem  to  be  justi- 
fied by  the  recent  action  of  certain  banks 
on  the  occasion  referred  to  in  the  Secre- 
tary’s report.” 

NATIONAL  BANKERS’  PANIC  OF 
1832-34. 

Professor  Sumner,  of  Yale,  in  his  His- 
tory of  American  Currency,  says:  “In 

1832  the  National  Bank  petitioned  for  a 
renewal  of  its  charter,  which  was  to  ex- 
pire in  1836.  * * * The  bill  passed  both 
Houses,  and  was  vetoed  by  the  President 
on  the  10th  of  July.  It  being  now  evi- 
dent that  the  bank  must  expire  unless 
some  influence  could  be  brought  to  bear 
to  change  the  President  or  win  two- 
thirds  of  Congress,  A VIOLENT  WAR- 
FARE WAS  BEGUN  BY  THE  BANK. 
The  power  of  its  interest  at  the  same 
time  is  attested  by  any  amount  of  evi- 
dence. * * * It  is  certain  that  the  banks 
paid  no  more  heed  to  the  laws  of  the 
State  than  they  did  to  the  laws  of  pru- 
dence or  of  banking  science,  and  that 
they  paid  very  little  heed  to  either.” 

During  1832  “the  motion  to  sell  out  the 
public  shares  wfis  LOST,  102  to  91, 
THROUGH  THfj  | NJFUTJUNCE  OF  THE 


BANK,  which,  as  they  afterward  dis- 
covered, had  a large  number  of  debtors, 
attorneys  and  stockholders  in  the 
House.  * * * 

“After  Congress  adjourned,  Septem- 
ber 22,  1833,  President  Jackson  ordered  Mr. 
Duane,  the  Secretary  of  the  Treasury,  to 
remove  the  public  deposits  rrom  the 
United  States  Bank.  He  refused  to  do  so, 
and  was  displaced  by  Mr.  Taney,  who 
did  it. 

“THE  WAR  WAS  NOW  IN  FULL 
BLAST.  The  bank  had  circulated  docu- 
ments during  the  canvass  of  the  previous 
year,  showing  its  services  and  merits. 
Against  this  proceeding  I see  no  valid 
objection.  The  documents  were  ‘polit- 
cal’  because  the  question  of  the  bank’s 
existence  had  become  political.  It  was 
justified  in  defending  itself.  But  in  Au- 
gust, 1833,  it  altered  its  policy.  IT  RAP- 
IDLY CONTRACTED  ITS  LOANS,  giv- 
ing as  a reason  the  necessity  of  provid- 
ing for  the  transfer  of  the  deposits,  A 
REASON  WHICH  THE  FACTS  DID 
NOT  WARRANT. 

“On  the  assembling  of  Congress,  De- 
cember, 1833,  the  message  announced  the 
step  taken,  giving  as  grounds  the  miscon- 
duct of  the  bank  IN  ATTEMPTING  TO 
CONTROL  THE  ELECTION,  and  the 
unsoundness  of  the  institution.  The 
President  also  charged  the  bank  with 
now  creating  AN  ARTIFICIAL  STRIN- 
GENCY IN  ORDER  TO  MAKE  ITSELF 
APPEAR  NECESSARY  TO  THE  COM- 
MUNITY. * * * 

“The  recharter  of  the  bank  being  now 
definitely  refused  (winter  of  1833-34),  a 
number  of  small  banks  were  organized 
to  take  its  place.  But  before  they  could 
get  into  operation  the  contraction  of 
the  bank  had  time  to  operate  upon  the 
market.  Many  deputations  came  up  to 
Congress  to  complain  of  distress,  and 
many  memorials  were  sent  up.  The  ex- 
citement was  great  throughout  the  coun- 
; try.  It  was  asserted,  however,  on  the 
other  side,  that  ALL  THIS  DISTRESS 
WAS  MANUFACTURED  BY  THE 
BANK  ITSELF,  IN  ORDER  TO  GAIN 
A RECHARTER,  AND  THAT  LOANS 
WERE  REFUSED  TO  SOME  AND 
GRANTED  FREELY  TO  OTHERS, 
WHO  USED  THEM  TO  CHARGE 
USURIOUS  RATES.  Benton  asserts  that 
two  cases  were  discovered,  one  in  which 
a broker  received  $1,100,000  to  use  in  this 
way,  for  which  he  charged  2V2  per  cent 
per  month.” 

The  foregoing  are  the  statements  of 
Prof.  Sumner  of  Yale,  one  of  the  most 
prominent  advocates  of  bank  money. 

Jackson  on  National  Banks. 

Following  the  above  occurrences,  Pres- 
ident Jackson  in  his  annual  message  to 
Congress  said:  “Circumstances  make  it 

my  duty  to  call  the  attention  of  Con- 
gress to  the  Bank  of  the  United  States. 
Created  for  the  convenience  of  the  Gov- 
ernment, THAT  INSTITUTION  HAS 
BECOME  THE  SCOURGE  OF  THE 
PEOPLE.  Its  interference  to  POST- 
PONE THE  PAYMENT  OF  A PORTION 
OF  THE  NATIONAL  DEBT,  that  it 
might  retain  the  public  money  appropriat- 
ed for  that  purpose  to  ptrengtheq  it  ip 


11 


a political  contest,  the  EXTRAORDI- 
NARY EXTENSION  AND  CONTRAC- 
TION OF  ITS  ACCOMMODATIONS  to 
the  ®ommunity,  its  corrupt  and  partisan 
loans,  its  exclusion  to  the  public  direc- 
tors from  a knowledge  of  its  most  im- 
portant proceedings,  the  unlimited  au- 
thority conferred  on  the  President  TO 
EXPEND  ITS  FUNDS  IN  HIRING 
WRITERS  and  procuring  the  execution 
of  printing  and  the  use  made  of  that  au- 
thority, the  retention  of  the  pension 
money  and  books  after  the  selection  of 
new  agents,  have  through  various  chan- 
nels been  laid  before  the  Congress.  THEY 
WERE  SUBSTANTIALLY  A CONFES- 
SION THAT  ALL  THE  REAL  DIS- 
TRESSES WHICH  INDIVIDUALS 
AND  THE  COUNTRY  HAD  ENDURED 
FOR  THE  PRECEDING  SIX  OR  EIGHT 
MONTHS  HAVE  BEEN  NEEDLESSLY 
PRODUCED  BY  IT  WITH  A VIEW  OF 
AFFECTING.  THROUGH  THE  SUF- 
FERINGS OF  THE  PEOPLE,  THE 
LEGISLATIVE  ACTION  OF  CON- 
GRESS.” 

Again  he  declares  in  the  same  mes- 
sage: 

President  Jackson’s  Prophecy. 

“Events  have  satisfied  my  mind,  and 
I think  the  minds  of  the  American  peo- 
ple, that  the  mischief  and  dangers  which 
flow  from  a national  bank  far  overbal- 
ance all  its  advantages.  The  bold  effort 
the  present  bank  has  made  to  control  the 
Government,  the  distress  it  has  wanton- 
ly produced,  the  violence  of  which  it  has 
been  the  occasion  in  one  of  our  cities 
famed  for  its  observance  of  law  and  or- 
der, ARE  BUT  PREMONITIONS  OF 
THE  FATE  THAT  AWAITS  THE  AM- 
ERICAN PEOPLE  SHOULD  THEY  BE 
DELUDED  INTO  A PERPETUATION 
OF  THIS  INSTITUTION,  OR  OF  THE 
ESTABLISHMENT  OF  ANOTHER 
LIKE  IT.  It  is  fervently  hoped  that  thus 
admonished,  those  who  have  heretofore 
favored  the  establishment  of  a substitute 
for  the  present  bank  will  be  induced  to 
abandon  it,  as  it  is  evidently  better  to 
incur  any  inconvenience  that  may  be  rea- 
sonably expected  than  to  CONCEN- 
TRATE THE  WHOLE  MONEY  POWER 
OF  THE  REPUBLIC  in  any  form  what- 
soever or  under  any  restrictions.” 

DEFEAT  OF  THE  RESTORATION 
OF  SILVER,  1878. 

Late  in  1877  the  House,  by  a two-thirds 
vote,  suspended  the  rules  and  passed  a 
free-coinage  bill.  Early  in  the  follow- 
ing year,  while  this  proposed  law  was 
before  the  Senate,  the  following  boast 
was  made  in  the  New  York  Tribune  of 
Jan.  11: 

“The  machinery  is  now  furnished  by 
which  in  any  emergency  the  financial 
corporations  of  the  East  can  act  together 
at  a single  day’s  notice  and  with  such 
power  that  NO  ACT  OF  CONGRESS 
CAN  OVERCOME  OR  RESIST  THEIR 
DECISION.” 

The  result  of  this  bankers’  combination 
was  that  in  the  Senate  the  question  of 
the  free  coinage  of  silver  Wa9  pot  even 


voted  upon,  and  the  bill  passed  by  it, 
perpetuating  the  gold  standard  of  fall- 
ing prices,  when  it  was  sent  over  to  the 
House,  was  considered  but  one  hour  and 
then  passed.  Thus  was  a return  to  the 
bimetallic  standard  of  prices  defeated. 
Jackson’s  caution  against  giving  over  to 
banks  the  control  of  average  prices  had 
not  been  observed— the  money  power  had 
been  concentrated  in  a system  of  na- 
tional banks. 

BANKERS’  PANIC  OF  FEBRUARY, 
1884. 

After  the  election  in  1880  Secretary  of 
the  Treasury  Sherman,  in  a letter  to  Gen- 
eral Garfield,  said:  “I  could  at  any  mo- 

ment by  issuing  silver  freely  bring  a 
crisis.”  Four  years  later,  with  the  addi- 
tional quantity  of  silver  in  use,  it  is  evi- 
dent that  a much  graver  crisis  could  be 
brought  on.  In  February,  1884,  the  sub- 
treasurer of  the  United  States  at  New 
York  gave  the  opportunity  for  a crisis, 
and  the  bankers  did  the  rest. 

The  object  was  to  influence  legislation, 
namely,  to  prevent  the  restoration  of  sil- 
ver and  to  give  added  privileges  to  na- 
tional banks.  The  result  was  that  silver 
legislation  was  headed  off,  but  the  banks 
did  not  get  an  increase  of  privileges.  The 
panic  of  May,  1884,  was  in  a measure  the 
result  of  the  February  panic. 

NATIONAL  BANKERS’  PANIC  OF 
1893. 

“Inside  History.” 

William  Salomon.  “A  member  of  the 
firm  of  Speyer  & Company,  one  of  the 
leading  international  banking  houses  of 
New  York  City,”  in  an  article  in  the 
July  Forum,  1895,  shows  how  Governor 
David  B.  Hill,  a bimetallist  at  that  time, 
was  defeated  for  the  democratic  nomina- 
tion for  president  in  1893,  and  in  his  place 
was  put  Grover  Cleveland.  Because  of 
the  difference  in  their  views  on  the  mon- 
ey question,  says  Banker  Salomon,  “A 
LARGE  NUMBER  OF  INFLUENTIAL 
MEN  IN  NEW  YORK  CITY  and  the 
State  FELT  OBLIGED  TO  EXERT  ALL 
THEIR  ENERGIES  FOR  THE  NOMI- 
NATION OF  MR.  CLEVELAND  and  the 
defeat  of  Mr.  Hill.’6  J 

After  Mr.  Cleveland’s  nomination, 
“WHAT  PRODUCED  ‘THE  SINEWS  OF 
WAR’?”  continued  Banker  Salomon, 
“was  the  conviction  that  the  triumphs 
of  the  democratic  party,  WITH  MR. 
CLEVELAND  AT  ITS  HEAD,  WOULD 
MEAN  A REPEAL  OF  THE  PURCHAS- 
ING-CLAUSE OF  THE  SHERMAN 
ACT.  THE  WORK  OF  THESE  MEN, 
HAPPILY,  WAS  WELL  REWARDED, 
first,  in  the  National  Convention  in  Chi- 
cago, and  subsequently  in  Congress  BY 
A REPEAL  OF  THE  PURCHASING- 
CLAUSE  OF  THE  SHERMAN  ACT.” 

Immediately  after  the  election  of  Mr. 
Cleveland  a cable  from  London  announc- 
ed that  it  was  thought  that  his  election 
meant  the  repeal  of  the  silver-purchase 
law.  That  Mr.  Cleveland  had  agreed  with 
the  representatives  of  London  and  pther 


12 


bankers  is  now  a matter  of  history— see 
Banker  Salomon’s  boastful  admissions 
above  quoted,  and  there  is  other  evidence, 
some  of  which  I shall  quote. 

Soon  after  the  election  the  bankers  be- 
gan their  work.  I have  elsewhere  set 
forth  the  different  steps;  here  I can  only 
mention  the  more  striking  instances: 

European  Bankers’  Panic  of  December. 

1893. 

They  started  in  to  give  an  “object  les- 
son” to  Congress  and  to  the  people.  Dec. 
15th,  when  the  business  world  was  not 
expecting  it,  they  suddenly  withdrew 
their  loans,  raided  the  gold  reserve  and 
exported  gold  when  the  exchange  rate 
was  above  the  shipping  point.  Wagers 
were  also  offered  that  gold  would  go  to 
a premium  over  silver  money  during  1893. 

The  next  day  a New  York  Special  in  the 
Chicago  Tribune  said:  It  is  unfortunate 

that  yesterday’s  calling  in  of  loans  was 
done  in  exactly  such  manner  as  would 
most  seriously  embarrass  and  agitate  the 
security  market,  because  this  has  given 
rise  to  charges  of  INTERNATIONAL 
DISTURBANCE  OF  PRICES. 

December  20th  a New  York  market  re- 
port to  the  Chicago  Inter-Ocean  said: 

“Call  loans  declined  to  4 per  cent.  It  is 
now  evident  the  flurry  in  the  money  mar- 
ket yesterday  WAS  DUE  LARGELY 
TO  MANIPULATION.  * * * These 

facts  were  made  so  clear  that  specula- 
tive sentiment  on  the  stock  exchange 
underwent  a complete  change.  Prices  ad- 
vanced sharply  and  there  were  no  reac- 
tions worthy  of  the  name  at  any  hour 
of  the  day.” 

The  Motive. 

December  16th  Bradstreet’s  weekly 
review  spoke  of  “The  steady  reduction  of 
the  treasury’s  available  balance  of  spe- 
cie,” and  the  report  continued:  “Wall 

Street  is  now  forced  to  regard  the  pos- 
sibility of  a slight  premium  on  gold  or 
the  appearance  of  the  treasury  as  a bor- 
rower for  the  purpose  of  replenishing 
its  gold  reserve  and  maintaining  the  sil- 
ver certificates  at  a parity  with  gold.  The 
general  opinion  is  that  IN  SUCH  AN 
EVENT  THE  REPEAL  OR  SUSPEN- 
SION OF  THE  SHERMAN  ACT  WULL 
BE  FACILITATED,  It  is  not  strange, 
therefore,  that  a flurry  in  the  loan  mar- 
ket with  a sharp  drop  in  stock  prices 
has  been  the  feature  of  the  last  two 
weeks.” 

And  on  the  following  day,  Dec.  17th,  a 
New  York  Special  in  the  market  report 
of  the  Chicago  Tribune  said: 

“As  for  the  money  market,  the  best 
that  can  be  said  is  that  the  week’s  ex- 
periences are  ‘BANK  SCARES,’  aggra- 
vated by  several  unlucky  coincidences. 
The  existing  incidents  of  this  week  have 
certainly  HASTENED  THE  REMEDY 
(i  e.,  unconditional  repeal).” 

Bankers’  Panic  of  February,  1893. 

During  the  winter  of  1892-93  two  more 
attempts  were  made  to  force  the  uncon- 
ditional repeal  of  the  silver  purchase  law, 
and  there  were  two  more  failures.  Dur- 
ing each  attack  the  bankers  gave  “ob- 


ject lessons,”  and  the  big  speculators, 
knowing  in  advance  when  the  “squeezes” 
were  coming,  “milked”  the  stock  and 
produce  markets.  The  way  the  smaller 
speculators  “got  onto  the  curves”  is  thus 
described  in  the  Bankers’  Magazine  of 
New  York,  March,  1893: 

“The  tumble  in  the  stock  market  during 
February  had  for  one  of  its  causes,  un- 
loading of  stocks  as  fast  as  anyone  would 
buy  them,  in  anticipatiq*n  that  the  gold 
reserve  would  not  be  replenished  and  that 
an  extra  session  would  be  called  early, 
and  an  attempt  made  TO  COERCE  its 
members  into  repealing  the  silver  pur- 
chasing act  unconditionally.” 

Big  Panic  Advised. 

But  no  extended  coercion  was  attempt- 
ed, as  President  Harrison,  whose  re-elec- 
tion was  defeated  by  Wall  street,  would 
not  have  co-operated  with  them.  It  was, 
however,  claimed  by  the  editor  of  the 
Commercial  Bulletin  and  by  others  of 
“the  best  financial  writers  of  New  York,” 
says  the  Bankers’  Magazine,  that  “the 
quickest,  if  not  the  only  way  to  repeal 
the  silver  purchase  law  is  to  precipitate 
a panic  upon  the  country,  AS  NOTHING 
SHORT  OF  THIS  will  convince  the  sil- 
ver men  of  their  error  and  arouse  public 
opinion  to  a point  which  will  COMPEL 
THE  NEXT  CONGRESS  TO  REPEAL 
THE  SHERMAN  LAW  WHETHER  IT 
WANTS  TO  OR  NOT.” 

A further  spur  to  the  bankers  to  bring 
on  a panic,  if  it  should  be  necessary  in 
order  to  secure  a repeal  of  the  silver  pur- 
chase law,  was  an  article  by  Professor 
Francis  Walker,  in  the  March  issue  of 
the  Journal  of  Political  Economy.  He 
said: 

“Fight  Without  Giving  Quarter.” 

The  “free  coinage  of  silver  * * * * 
is  to  be  met  by  defiance  and  uncompro- 
mising resistance.  It  is  to  be  met,  not  as 
it  was  in  1890,  but  as  it  was  in  1891  and 
1892.  It  should  be  FOUGHT  FROM  THE 
START,  ON  THE  LINE;  FOUGHT 
TOOTH  AND  NAIL;  FOUGHT  TO  THE 
DEATH.  * * * The  only  good  policy  in 
dealing  with  financial  crazes  is  to  FIGHT 
THEM  FROM  THE  WORD  GO,  WITH- 
OUT ASKING  OR  GIVING  QUARTER.” 

Events  Precediug  the  Panic. 

President  Cleveland  was  inaugurated 
March  4th,  1893,  and  he  named  for  the 
Secretary  of  the  Treasury,  John  G.  Car- 
lisle, and  thereafter  they  worked  togeth- 
er for  the  unconditional  repeal  of  the  law 
which  was  adding  each  year  to  the  vol- 
ume of  money  an  amount  equal  to  54,- 
000,000  dollars. 

Space  will  not  permit  the  presentation 
of  all  the  steps  taken  by  President  Cleve- 
land and  hi.s  secretarj-  to  shake  the  con- 
fidence of  the  people  in  such  a way  as 
to  force  the  unconditional  repeal  of  the 
silver  purchase  lawT,  and  I proceed  to 
the  culmination  period: 

Early  in  April  President  Cleveland  ap- 
pointed a new  Sub-Treasurer  at  New 
York  City,  his  bonds  were  approved  on 
the  20th,  and  important  events  soon  fol- 
lowed in  rapid  succession.  He  held  re- 
peated interviews  with  the  leading  na- 


13 


tional  bankers  of  New  York  and  flitted 
back  and  forth  to  Washington— matters 
were  of  such  a character  that  communi- 
cations in  writing  were  dispensed  with. 
Mr.  Shucker  gives  the  details  of  these 
movements  in  his  “History  of  the  Panic 
of  1893.” 

On  the  evening  of  April  23rd  an  import- 
ant conference  took  place  between  the 
Sub-Treasurer  and  certain  national  bank 
presidents  “at  a private  house  up-town,” 
a»d  during  the  next  day  there  came  to 
the  Sub-Treasurer’s  office  for  conference, 
nearly  all  the  presidents  of  the  leading 
New  York  banks,  including  the  repre- 
sentatives of  Rothschild  & Sons  of  Lon- 
don, and  other  European  banking 
houses. 

Three  days  later  President  Cleveland 
and  his  party,  including  Secretary  Car- 
lisle, arrived  in  New  York  to  assist  in 
the  celebration  of  Columbus  Day. 

Carlisle’s  Conference  with  Wall  Street 
Bankers. 

On  the  day  following  the  celebration, 
Secretary  Carlisle  was,  say's  the  New 
York  Times,  driven  to  the  private  resi- 
dence of  one  of  the  bank  presidents, 
where  there  were  present  nine  presidents 
of  national  banks  and  the  Sub-Treasurer 
for  New  York.  The  New  York  Times 
further  says  that: 

“The  Secretary  indicated  his  opposition 
to  at  present  building  up  a gold  reserve 
by  a bond  issue.  * * * The  principal  ob- 
jection was  that  IT  WOULD  TEND  TO 
DELAY  A REPEAL  OF  THE  SILVER 
PURCHASE  LAW.  Beginning  with  the 
repeal  of  that  act,  a thorough  revision 
of  the  currency  laws  will  be  a good 
thing.” 

Advice  and  Opinions  as  to  a Bank 
Panic. 

On  the  morning  of  the  day  on  which 
the  above  conference  took  place,  a Wash- 
ington dispatch  to  the  New  York  Herald 
— presidential  and  Wall  Street  organ — 
said:  “If  the  silver  law  cannot  be  re- 

pealed without  a bitter  fight,  there  are 
many  reasons  why  IT  WILL  BE  AS 
WELL  TO  ‘HAVE  IT  OUT  NOW’  as 
later  on,  and  there  is  at  least  one  reason 
why  it  would  be  better.  THIS  IS  WHAT 
PUBLIC  MEN  SAY  HERE.” 

On  the  morning  after  the  conference, 
the  New  York  Times  in  an  editorial  de- 
clared that  the  repeal  of  the  silver  pur- 
chase law  can  be  secured,  “IF  it  is  de- 
manded with  SUFFICIENT  ENERGY.” 

Two  days  after  the  New  York  confer- 
ence, a Special  from  New  York,  publish- 
ed in  The  Chicago  Evening  Post,  said: 
“Secretary  Carlisle  made  a very  favor- 
able impression  on  the  New  York  bank- 
ers at  the  conference  held  on  Thursday 
last.  The  clearness  of  his  views  as  ex- 
pressed at  that  time  and  the  indications 
of  A DETERMINATION  on  the  part  of 
the  President  and  himself  TO  TrtEAT 
THE  MATTER  OF  THE  CURRENCY 
HEROICALLY  went  far  and  changed  the 
feelings  of  the  financial  community  to- 
ward him.” 

During  the  same  day  a New  York  cor- 
respondent in  a Special  to  The  Chicago 
Tribune  declares: 


“Mr.  Carlisle  said  the  country  might 
as  well  understand  now  as  at  any  time 
that  it  is  suffering  from  a vicious  silver 
law,  and  he  believed  the  only  way  to 
bring  the  silver-favoring  community  to 
a realization  of  the  evil  that  is  contain- 
ed in  that  law  IS  TO  PERMIT  THEM 
TO  HAVE  AN  EXPERIENCE  WITH 
THE  BUSINESS  DEPRESSION  that  it 
is  bound  to  cause.  * * * And  the  bank- 
ers seemed  to  think  that  MR.  CARLISLE 
DID  NOT  REGARD  A LITTLE  EXPE- 
RIENCE OF  HARD  TIMES  AS  AN  UN- 
MITIGATED EVIL  JUST  NOW.” 

On  the  day  preceding  this,  i.  e.,  Friday, 
April  28th,  Work,  Strong  & Co.’s  market 
letter  from  New  York  to  a Chicago  house 
thus  speaks  of  Secretary  Carlisle’s  con- 
ference with  the  bankers:  “It  defines  the 
policy  of  the  present  Administration  on 
the  financial  questions  now  before  the 
Country.  IF  AS  SUGGESTED,  nothing 
will  be  done  to  help  the  present  condi- 
tion, and  CONGRESS  HAS  TO  BE  CO- 
ERCED into  a repeal  of  the  silver  bill, 
we  must  look  for  a period  of  dull  and 
uncertain  times.  Still  THE  END  MAY 
JUSTIFY  THE  MEANS.  To-day’s  mar- 
ket is  a dull  one.” 

The  next  day,  Dick  Bros.  & Lawrence’s 
telegram  from  New  York  to  Valentine  & 
McAvoy,  Chicago,  said:  “It  seems  to  be 
believed  that  the  Administration  will 
simply  let  matters  drift,  maintaining  gold 
payment  but  using  the  reserve,  and  BY 
INCREASING  THE  SCARk.  PUT  THE 
SCREWS  ON  MONEYED  PEOPLE 
THROUGHOUT  THE  COUNTRY,  HOP- 
ING TO  INDUCE  PROPER  LEGISLA- 
TION. Money  is  working  closely  but  no 
special  squeeze  is  feared. 

The  same  day  Dominick  & Dickerson 
telegraphed  to  Chicago:  “Conservative 

men  are  preparing  for  bad  times  and 
tight  money.” 

The  Bankers'  Direct  Assault  and  the  In- 
action of  the  Chief  Executive, 

The  conference  between  the  Bankers  in 
New  York— Bankers  who  besides  acting 
for  American  capital,  represent  the  Eu- 
ropean Banking  Houses— and  the  Presi- 
dent through  his  Secretary  and  Sub- 
Secretary,  ended  Thursday  night,  April 
27th.  Friday  and  Saturday  nothing  es- 
pecial happened,  except  that  Wall  Street 
brokers  as  we  have  shown,  were  cogni- 
zant that  trouble  was  brewing  and  warn- 
ed their  customers,  and  from  other 
sources  it  appeared  that  banks  were 
“buying  no  commercial  paper  to  speak 
of  and  rates  were  very  high,”  whereas 
for  Wall  Street  purposes  the  stock  mon- 
ey ruled  easy.  It  would  not  do  for  the 
bankers  to  openly  carry  on  a Financial 
"War  too  soon  after  the  conference,  so 
Friday,  Saturday  and  Sunday  were  passed 
over. 

Monday  morning,  May  1st,  the  bankers 
began  a direct  assault  against  the  Com- 
mercial interests  of  the  country  as  dis- 
tinguished from  the  stock  market:  in  the 
stock  market  for  Monday,  prices  fell 
somewhat  and  money  on  call  was  for  a 
time  “up  around  eight  per  cent,”  but  this, 
though,  said  the  market  report  for  the 
day,  “REFLECTS  NOTHING  OF  THE 
SITUATION  IN  THE  FINANCIAL 


14 


WORLD  OUTSIDE  OF  THE  STOCK 
MARKET,  and  “even  upon  stock  ex- 
change collateral  lenders  are  looking  for 
advance  only  when  the  securities  placed 
are  thoroughly  gilt-edge.” 

The  next  morning  E.  A.  Driver  tele- 
graphed Baldwin  & Farnum,  Chicago: 
“The  editorial  writers  in  the  New  York 
morning  journals  take  a very  gloomy  view 
of  things.  Money  is  close.  The  contin- 
ued agitation  • of  the  silver  question  has 
scared  the  bulls  off  into  the  swamps  and 
woods,  and  the  bears  simply  have  to  raid 
a stock  to  knock  it  silly,  THE  ONLY 
WAY  IS  TO  KEEP  OUT.” 

The  following  day  “The  extreme  de- 
cline in  stocks  varied  from  7 points  in  su- 
gar stocks  and  13  points  in  Chicago  gas 
to  6 V2  points  in  Western  Union,  and  15 
points  in  national  cordage.  The  over- 
whelming breaks  bore  unmistakable 
signs  of  forced  liquidation  (i.  e.,  exhaus- 
tion of  margin)  and  were  at  once  for- 
warded by  rumors  of  Wall  Street  fail- 
ures. While  the  excitement  was  at  its 
height  commission  houses  unconnected 
with  the  larger  pools,  threw  over  heavy 
blocks  of  stock  and  hastened  the  de- 
cline. * * * 

The  next  day  prices  fell  still  lower. 
Work,  Strong  & Co.’s  Wall  Street  letter 
to  Schwartz,  Dupee  & McCormick  of  Chi- 
cago, said : 

“Prices  in  many  cases  are  lower  to- 
day than  they  have  been  at  time  during 
this  state  of  depression,  and  IF  THE 
PRESENT  ADMINISTRATION  SEEKS 
TO  GIVE  TO  THE  SILVER  MEN  AN 
OBJECT  LESSON  using  for  such  a pur- 
pose the  misery  and  misfortunes  of  the 
money  borrowing  community,  THEY 
HAVE  MET  WITH  GREAT  SUCCESS.” 

During  the  day  (Wednesday)  bulletins 
were  issued  representing  that  President 
Cleveland  was  about  ready  to  order 
bonds  to  build  up  the  reserve.  Mr.  Alla- 
way, the  stock  market  reporter  in  Wall 
Street,  called  on  the  Presidents  of  per- 
haps a dozen  prominent  banks.  They 
said  that  AN  ORDER  TO  ISSUE  SUCH 
BONDS  “WOULD  STOP  THE  PANIC 
WHICH  HAS  JUST  BEGUN.” 

Up  to  Thursday  night  there  had  been 
for  six  consecutive  business  days  declines 
in  the  stock  market;  for  the  last  four 
days  very  heavjr  declines.  The  next  morn- 
ing the  English  market  was  higher,  but 
during  the  day  a further  onslaught  was 
made  upon'  stocks  in  New  York,  and 
with  the  suspension  of  a heavy  operator 
the  price  of  sugar  certificates  dropped 
23  points;  national  cordage  preferred,  22; 
general  electric,  22;  Chicago  gas,  11,  and 
others  of  the  group  in  almost  equally  se- 
rious proportions.  The  bidding  up  of 
money  rates  to  40  per  cent— though  the 
rate  within  an  hour  fell  again  to  6— 
aggravated  the  situation.  * * * As  con- 
fidence returned  such  of  the  traders  as 
were  left  unhurt  joined  in  the  buying  on 
the  rise.  Investment  purchases  in  heavy 
single  blocks  again  supplied  their  part. 
Tn  the  last  hour  as  the  belief  in  a reac- 
tion spread,  the  movement  grew  into  one 
of  those  stamped  always  familiar  after 
a temporary  panic,  and  in  not  a few  of 
the  best  known  stocks  prices  rose  far 
above  yesterday’s  closing  prices.” 


Thus  did  those  “on  the  inside”  make 
princely  fortunes  by  “breaking”  and 
“bulling”  the  market.  In  the  meantime 
the  life  of  business  in  the  Commercial 
World  was  being  choked  out  until  a 
surrender  should  be  secured  in  the  form 
of  an  unconditional  repeal  of  the  silver 
purchase  law. 

The  Bankers’  Combine:  The  Panic 

Circular. 

The  following  circular  shows  how  the 
widespread  panic  of  early  May  and  the 
succeeding  months  was  forced  by  the 
bankers.  They  practically  all  belong  to 
the  American  Bankers’  Association,  and 
through  the  Executive  Committee  decide 
as  to  policies  and  then  act  together.  The 
executive  committee  is  said  to  have 
mailed  to  each  member  of  the  Associa- 
tion the  following  letter;  that  a letter 
of  this  character  was  sent  out,  has  been 
admitted  by  many  of  the  bankers  who 
received  it; 

“Dear  Sir:  THE  INTERESTS  OF  NA- 
TIONAL BANKERS  REQUIRE  IMME- 
DIATE FINANCIAL  LEGISLATION 
BY  CONGRESS.  Silver,  silver  certifi- 
cates and  Treasury  notes  must  be  re- 
tired, and  the  national  bank  notes,  upon 
a gold  basis,  made  the  only  money.  This 
will  require  the  authorization  of  from 
$500,000,000  to  $1,000,000,000  of  new  bonds  as 
a basis  of  circulation.  YOU  WILL  AT 
ONCE  RETIRE  ONE-THIRD  OF  YOUR 
CIRCULATION  AND  CALL  IN  ONE- 
HALF  OF  YOUR  LOANS.  Be  careful  to 
make  a money  stringency  felt  among 
your  patrons,  especially  among  influen- 
tial business  men.  Advocate  an  extra 
session  of  Congress  for  the  repeal  of  the 
purchase  clause  of  the  Sherman  law,  and 
act  with  the  other  banks  of  your  city 
in  securing  a petition  to  Congress  for  its 
unconditional  repeal,  per  acompanying 
form.  Use  personal  influence  with  Con- 
gressmen, and  particularly  let  your 
wishes  be  known  to  your  Senators.  The 
future  life  of  national  banks  as  fixed  and 
safe  investments  depends  upon  immediate 
action,  as  there  is  an  increasing  senti- 
ment in  favor  of  government  legal-tender 
and  silver  coinage.” 

Comment  upon  the  foregoing  cannot 
add  to  its  hideousness.  Read  it  again 
and  then  peruse  the  following: 

Ex-Governor  David  B.  Hill  in  a speech 
in  the  United  States  Senate,  August  25, 
1893,  said: 

Senator  Hill  Scores  Wall  Street. 

“SOME  PORTION  OF  THE  PRESENT 
PANIC  MAY  BE  TRACED  TO  A CON- 
CERTED EFFORT  ON  THE  PART  OF 
NUMEROUS  MONOMETALLISTS  TO 
PRODUCE  IT  IN  ORDER  FURTHER 
TO  DISCREDIT  SILVER  AS  THE 
STANDARD  MONEY  OF  THE  COUN- 
TRY. With  ghoulish  glee  they  welcome 
every  bank  failure,  especially  in  the  Sil- 
ver States,  little  dreaming  that  such  fail- 
ures would  soon  occur  at  their  own  dodrs. 
They  encourage  the  hoarding  of  money; 
they  inaugurated  the  policy  of  REFUS- 
ING LOANS  TO  THE  PEOPLE  EVEN 
UPON  THE  BEST  OF  SECURITY;  AND 
ATTEMPTED  IN  EVERY  WAY  TO 


15 


SPREAD  DISASTER  BROADCAST 
THROUGHOUT  THE  LAND.  These  dis- 
turbers—the  promoters  of  the  public  per- 
il—REPRESENT  LARGELY  THE 
CREDITOR  CLASS,  THE  MEN  WHO 
DESIRE  TO  APPRECIATE  THE  GOLD  * 
DOLLAR  IN  ORDER  TO  SUBSERVE 
THEIR  OWN  SELFISH  INTERESTS, 
men  who  revel  in  hard  times,  men  who 
drive  harsh  bargains  with  their  fellow- 
men  regardless  of  financial  distress  and 
men  wholly  unfamiliar  with  the  true 
principles  of  monetary  science.” 

The  Remedy, 

The  panic  for  money  in  1893  could  not 
have  occurred  had  the  law  been  such  as 
to  have  changed  the  President’s  discre- 
tion into  an  imperative  duty  to  maintain 
a stable  average  of  prices  through  the 
volume  of  money. 

The  Bankers’  False  Prophecies. 

The  great  speculators  and  big  creditors 
secured  through  their  banks  the  uncon- 
ditional repeal  of  the  silver  purchase  law. 

It  was  consummated  Nov.  1st,  1893.  They 
and  their  hired  men  and  dupes  promised 
that  with  the  repeal  of  this  silver  pur- 
chase law  there  would  be  ‘‘good  times” 
to  the  producing  and  trading  classes. 
Those  who  opposed  the  creditors  and 
speculators,  pointed  out  that  to  shut  off 
a volume  of  new  money  amounting  to 
54,000,000  dollars  each  year,  would  tend  ' 
to  lower  the  average  prices,  and  that  with 
falling  prices  production  becomes  disor- 
ganized, profits  fall  or  are  more  than 
wiped  out,  the  unemployed  increase,  and 
wages  fall. 

Which  prophecy  proved  true?  History 
shows  that  the  prophecy  of  the  bimetal- 
lists was  correct:  By  spring  there  were 

armies  of  unemployed  men  and  during 
the  summer  there  were  strikes  and  dis- 
turbances which  amounted  to  Civil  War. 
The  average  of  prices  continued  to  fall 
until  the  spring  of  1895,  at  which  time 
they  were  forced  up  by  the  banks  for  po- 
litical effect,  as  we  shall  show. 

THESECOND  ACT  IN  THE  GREAT 
CONSPIRACY  OF  1893:  THE 
DESTRUCTION  OF 
GREENBACKS. 


Inception  of  the  Conspiracy. 

At  the  Conference  in  New  York  be- 
tween the  great  money  loaners  and  Secre- 
tary of  the  Treasury  Carlisle,  April  27th, 
1893,  they  are  reported  to  have  agreed 
that:  ‘‘Beginning  with  the  repeal  of  the 
silver  purchase  act,  a thorough  revision 
of  the  currency  laws  would  be  a good 
thing.” 

This  from  the  bankers’  standpoint 
meant  that  the  greenbacks  should  be  de- 
stroyed and  the  bankers  placed  more 
completely  in  control  of  the  average  of 
prices,  and  production  and  trade. 

The  Assault  on  the  Greenbacks. 

A forward  movement  in  this  second 
stage  of  the  conspiracy  was  begun  about 
one  year  after  the  repeal  of  the  silver 
purchase  law.  Space  will  not  here  per- 
mit the  cunningly  devised  methods  where- 


by President  Cleveland  and  Secretary 
Carlisle  assisted  Wall  Street  in  the  fight. 
Numerous  ‘‘object  lessons”  were  given 
Congress  and  the  people  in  an  endeavor 
to  create  a sentiment  which  would  re- 
sult in  a law  for  the  destruction  of  the 
greenbacks.  In  another  place  I have 
collected  the  facts  and  here  must  be 
content  to  set  forth  only  one  or  two  lead- 
ing ones: 

Three  Administration  bills  were  pushed 
forward  in  the  House  at  three  different 
times,  and  Wall  Street  co-operated  by 
bombarding  business  through  raids  upon 
the  gold-reserve  and  the  forcing  down  of 
the  average  of  prices. 

The  third  time  the  advance  was  made 
upon  the  Greenbacks  by  the  bankers  and 
the  President,  the  latter  refused  to  build 
up  the  gold  reserve  and  sent  a message 
to  Congress  asking  that  it  retire  the 
greenbacks.  During  the  day  that  Con- 
gress received  the  message,  the  action  of 
the  bankers  was  such  that  ‘‘the  Treasury 
was  confronted  by  the  prospect  of  an  ac- 
tual crisis  and  the  country  by  ANOTH- 
ER AND  WORSE  PANIC  THAN  THAT 
WHICH  HAD  JUST  SUBSIDED  (1893).” 

The  quoted  words  are  those  of.  the  edi- 
tor of  Bradstreet,  in  the  July  ‘‘Review 
of  Reviews,”  1895. 

Policy  of  Retiring  the  Greenbacks. 

The  Wall  Street  bankers  and  President 
Cleveland,  their  co-operator,  failed  to  se- 
cure the  retirement  of  the  Greenbacks. 
The  policy  of  retiring  the  greenbacks  was 
in  1896  one  of  the  tenets  of  Gold  Democ- 
racy, of  which  President  Cleveland  was 
the  principal  leader.  The  Republican 
party  did  not  advocate  the  retirement  of 
the  greenbacks,  and  thereby  championed 
their  retention.  But  to-day  the  Gold  Dem- 
ocracy have  given  up  their  party  organ- 
ization, for  its  members,  including  Wall 
Street,  have  captured  the  Republican 
party;  every  nominee  for  Congress  on  the 
Republican  ticket  is  pledged  to  the  re- 
tirement of  the  greenbacks  and  the  ex- 
tension of  privileges  to  the  great  specula- 
tive bankers.  Cannot  the  old-time  Re- 
publicans see  that  their  party  machinery 
has  been  captured? 

INTERNATIONAL  CONTROL  OF 
AVERAGE  PRICES. 

The  Cause  of  “Good  Times”  in  1895. 

After  the  defeat  of  the  efforts  to  retire 
the  greenbacks  in  January,  1895,  the  mon- 
eyed interests  changed  their  tactics  and 
endeavored  through  good  times  to 
counteract  the  increased  sentiment 
against  national  banks  and  the  gold 
standard. 

The  bankers  built  up  the  gold  reserve 
under  a private  contract  with  President 
Cleveland,  in  which  it  was  agreed  that 
31,000,000  in  gold  should  be  imported, 
and  no  gold  exported  before  October,  at 
which  time  it  would  be  held  to  move  the 
crops. 

Furthermore,  the  Directors  of  the  Bank 
of  Germany  began  issuing  paper  money, 
reducing  their  coin  reserves,  and  expand- 
ing credits.  This  bank  increased  the  mon- 
ey in  use  $101,000,000  by  October  1st.  The 


13 


order  all  along  the  line  was  to  expand 
credits,  and  of  course  the  average  of 
prices  rose.  Commodities  at  wholesale 
rose  five  per  cent  on  the  average,  and 
“good  times”  to  the  producing  classes  re- 
turned to  a considerable  extent. 

During  this  time  President  Cleveland 
and  the  Wall  Street  bankers  and  their 
employes  were  on  “the  money  question,” 
conducting  a “campaign  of  education,” 
as  they  termed  it.  With  each  increase  in 
prosperity,  due  to  rising  prices,  they 
shouted,  “The  Free  Silver  Craze  is  kill- 
ed!” And  it  was  allayed,  so  long  as  the 
improvement  continued,  for  what  the 
people  asked  for  was  being  given,  name- 
ly, a cessation  of  falling  prices  and  a 
slight  restoration  of  prices. 

Russian  Bear  Interferes  with  Bankerse 
Plans. 

But  Russia  played  havoc  with  the 
bankers  “pie.”  It  reached  out  and  in  a 
single  week  swept  $79,000,000  of  gold  into 
its  war  chest..  This  resulted  in  a ces- 
sation of  rising  prices  and  a fall  in  prices 
which  nearly  lost  the  bankers  the  elec- 
tion in  1896. 

International  Manipulation  of  Average 
Prices,  1879-80  and  ’87. 

Rising  prices,  similar  to  those  institut- 
ed in  1895,  were  put  in  operation  by  the 
bankers  during  the  latter  part  of  1879. 
The  data  I have  compiled  and  published 
in  “The  Money  Question.”  The  motive 
of  the  manipulators  was  political  and 
commercial;  through  the  rising  prices  and 
good  times  to  the  producing  and  trading 
classes  they  kept  their  tools  in  power 
both  in  Europe  and  the  United  States, 
and  they  also  reaped  great  fortunes  from 
“speculations,”  i.  e.,  they  knew  the  di- 
rection of  prices  in  advance  of  the  aver- 
age speculator  and  business  man,  and 
so  “fleeced”  them.  Loaded  dice  are  no 
worse. 

Furthermore,  they  deceived  the  public 
as  to  the  cause  of  the  “good  times.”  In 
Germany  and  France,  where  protective 
tariffs  had  recently  been  instituted,  the 
public  were  made  to  believe  that  these 
tariffs  had  caused  the  good  times,  and 
in  the  United  States  it  was  claimed  that 
the  “resumption  of  specie  payments”  was 
the  cause. 

In  1887  the  same  operation,  practically, 
as  in  1879,  was  gone  through  with  and 
practically  the  same  results  were  at- 
tained. 

Internationai  Control  of  Average  Prices, 
December,  1895. 

The  Aggregated  Wealth  with  which 
President  Cleveland  contracted  for  bonds 
in  February,  1895,  is  thus  described  by 
the  editor  of  Bradstreet  in  “The  Review 
of  Reviews,”  July,  1895: 

“It  is  probably  the  greatest  financial 
syndicate  ever  organized.  It  is  practical- 
ly a blind  pool  with  several  hundred 
members  in  the  United  States  and  abroad 
(besides  the  London  and  New  York  houses 
of  the  Rothschilds  and  Morgan),  WHOSE 
TOTAL  WEALTH  IS  PROBABLY  NOT 
LESS  THAN  $600,000,000. 


An  illustration  of  the  way  in  which  the 
great  moneyed  interests  operate  to  se- 
cure legislation  and  at  the  same  time 
reap  large  profits  from  “speculation”  is 
the  following  instance: 

President  Cleveland  delivered  his  “Vene- 
zuela Message”  at  a time  when  the  gold 
reserve  was  down  to  about  70  millions  of 
dollars  and  when  every  effort  was  being 
made  to  retire  the  greenbacks.  As  to 
what  followed  the  President’s  threat  of 
war  with  England,  is  thus  described  in 
the  columns  of  the  daily  papers: 

The  second  day  after  the  message  was 
given  to  the  public  a cablegram  stated 
that  there  was  a meeting  in  London  of 
the  leading  moneyed  men,  and  the  ques- 
tion under  discussion  was,  “Shall  all 
English  houses  withdraw  their  credits 
from  the  United  States?” 

The  Assauit. 

On  the  morning  following  this  confer- 
ence the  prices  of  American  stocks  in 
London  tumbled  as  if  a military  war  had 
been  declared,  and  when  the  New  York 
stock  market  opened  a panic  was  soon 
“on.”  During  two  days,  first-class  stocks 
like  the  N.  J.  Central,  fell  17%  points; 
Rock  Island,  16%;  Pullman,  15%; 
St.  Paul,  15%;  Lake  Shore,  14%; 
Burlington,  14%;  N.  Y.  Central, 
101%;  111.  Central,  10.  The  moneyed 

interests  forced  down  prices  by  selling 
great  quantities  of  stocks  and  bonds  AND 
SHUTTING  OFF  THE  SUPPLY  OF 
MONEY  AND  CREDITS;  the  aggregate 
European  sales  were  $13,542,000,  and  in 
New  York  “none  of  the  moneyed  institu- 
tions would  renew  loans  at  less  than  4 
per  cent,  and  many  of  them  WOULD 
MAKE  NO  RENEWALS  AT  ANY 
ADVANCE.  To  carry  stocks  along,  mon- 
ey was  frequently  lent  at  as  high  a fig- 
ure as  75  per  cent  before  2 o’clock  Fri- 
day.” 

This  action  by  the  banks  was  taken 
in  the  face  of  the  fact  that  “the  surplus 
reserve  amounted  to  $20,000,000.”  All  this 
occurred  when  nothing  new  in  the  con- 
troversy between  the  United  States  and 
England  had  occurred  since  the  preceding 
Tuesday.  The  moneyed  interests  simply 
TOOK  THAT  OPPORTUNITY  TO 
“WORK”  THE  STOCK  MARKET.  AND 
what  was,  evidently  of  far  more  import- 
ance to  them,  INFLUENCE  LEGISLA- 
TION FOR  THE  RETIREMENT  OF 
THE  GREENBACKS.  For  at  this  time 
the  gold  reserve  was  down  to  about  70 
millions,  and  it  was  understood  that 
PRESIDENT  CLEVELAND  WOULD 
NOT  ISSUE  MORE  BONDS  UNTIL 
CONGRESS  SHOULD  REFUSE  TO  RE- 
TIRE THE  GREENBACKS.  And  during 
the  afternoon  of  Friday  President  Cleve- 
land fulfilled  his  part  of  the  program 
by  not  advertising  a bond  issue  but  send- 
ing instead  a message  to  Congress,  say- 
ing: “I  ask  at  the  hands  of  Congress 

such  prompt  aid  as  it  alone  has  the  pow- 
er to  give.”  This  was  what  he  in  effect 
said.  He  also  asked  the  retirement  of 
the  greenbacks,  and  expressed  “the  earn- 
est hope”  that  it  would  not  take  a recess 
from  its  labor”  before  considering  the 


17 


recommendations  submitted  in  the  mes- 
sage. 

Result  of  the  Assault. 

In  the  House  two  bills  were  framed, 
one  providing-  for  additional  revenue  from 
import  duties  and  the  second  providing 
for  3 per  cent  coin  bonds  to  replenish  the 
reserve,  and  further  providing  that  THE 
GREENBACKS  PRESENTED  FOR  RE- 
DEMPTION SHOULD  NOT  BE  REIS- 
SUED. Thus  did  the  leaders  in  a Re- 
publican house  show  that  they  were 
working  in  the  interests  of  the  moneyed 
classes.  Speaker  Reed  made  this  “bid” 
for  support  by  the  moneyed  interests,  for 
a presidential  nomination  was  at  hand. 
The  Republicans  from  the  West  and 
South  refused,  of  course,  to  vote  for  the 
measure,  and  it  was  amended  by  striking 
out  the  clause  which  forbade  the  reissue 
of  the  redeemed  greenbacks.  The  bill, 
however,  could  not  have  passed  the  Sen- 
ate, and  because  of  this,  no  determined 
attempt  was  made  to  force  its  passage  in 
the  House. 

In  conclusion,  as  to  the  international 
control  of  prices,  I quote  from  one  of 
America’s  greatest  students  of  finance, 
Henry  C.  Carey: 

International  Control  of  Average  Prices, 
1783  to  1853. 

“At  intervals  of  half  a dozen  years  our 
monetary  bag  has  been  inflated  from 
abroad,  the  balloon  then  rising  TO  BE 
SUDDENLY  COLLAPSED  AT  THE 
•WILL  OF  FOREIGN  BANKERS,  with 
ruin  to  all  who  have  been  led  to  go  in 
debt,  leaving  them  and  their  families  to 
starting  in  the  world  anew,  with  the  stain 
of  bankruptcy  clinging  to  them  in  all 
the  future.” 

PHILADELPHIA  MANUFACTUR- 
ERS COERCED. 

The  Result  of  Existing  System. 

Early  in  the  year  of  1896  a delegation 
of  Philadelphia  manufacturers  went  over 
to  Washington  to  ask  for  the  restora- 
tion of  bimetallism.  The  dispatches  from 
Washington  printed  at  the  time  state 
the  claims  which  they  made  as  to  the 
tieed  for  the  remedy. 

After  the  capture  of  the  Republican 
party  by  the  gold  standard  and  anti- 
greenback people,  and  the  bolt  from  it 
by  Senator  Teller  and  others,  many  of  the 
Philadelphia  manufacturers  decided  to 
bolt,  also,  and  to  support  the  party  advo- 
cating the  restoration  of  bimetallism. 
The  bankers  “got  wind”  of  it  and  inform- 
ed them,  it  is  said,  that  NOT  ONE  OF 
THEM  COULD  CONTINUE  IN  BUSI- 
NESS IF  HIS  LINE  OF  BANK  CRED- 
ITS WERE  CUT  OFF.  This  they  had 
to  admit,  and  the  bankers  further  de- 
clared, it  is  claimed,  and  on  high  author- 
it  and  from  several  sources,  that  IF 
THEY  SUPPORTED  THE  DEMOCRAT- 
IC TICKET  THEY  (THE  BANKERS) 
WOULD  RUIN  EVERY  ONE  OF 
THEM.  The  manufacturers  “lay  down.” 

Let  us  turn  from  the  illustrations  of 
-how  the  bankers  control  the  average  of 


prices  to  secure  Personal  Profits,  and 
consider  the  Existing  Bank  and  Money 
Trust. 

PART  VIII.  THE  EXISTING  BANK 
AND  MONEY  TRUST. 


The  Organization. 

In  the  early  70’s  the  American  Bankers’ 
Association  was  organized.  The  re- 
sult of  the  combination  was  a 
promotion  of  the  bankers’  inter- 
ests, and  the  organization  grew: 
“Since  1884,”  said  the  President  of  this 
association  in  his  annual  address  in  1895, 
“numerous  state  associations  have  been 
formed,  until  now  there  are  30  of  them, 
with  a total  numerical  strength  of  near- 
ly 3,700  members.”  There  are  also  sub- 
organizations termed  Groups.  The  anar- 
chists of  Chicago  were  so  minutely  or- 
ganized that  they,  too,  had  “groups,”  and 
in  “Caesar’s  Column”  there  are  also 
“groups.” 

Motive  and  Past  History. 

The  President  of  the  Association  in  the 
annual  address  above  mentioned,  said: 

“Growing  out  of  the  agitation  begun  in 
the  conventions  of  the  association,  has 
followed  the  abolition  of  days  of  grace  in 
many  states,  twelve  having  already 
adopted  the  reform  (?).” 

“There  can  be  no  necessity  for  a revis- 
ion of  our  declaration  of  principles,  but 
the  growth  and  development  of  our  com- 
mon country  and  the  concurrent 
growth  of  the  banking  business  have 
created  a necessity  for  smaller  local  or- 
ganizations, and  since  1884  numerous 
state  associations  have  been  formed,  un- 
til now  there  are  thirty  of  them,  with  a 
total  numerical  strength  of  nearly  3,700 
members.  THESE  ASSOCIATIONS  ARE 
CAPABLE  OF  AND  DO  EXERT  A 
POWERFUL  INFLUENCE  IN  THE  LO- 
CALITIES IN  WHICH  THEY  EX- 
IST. * * * 

“We  cannot  hope  to  change  our  politi- 
cal system,  but  we  can  and  should  util- 
ize all  the  agencies  at  our  command  TO 
INCREASE  OUR  OWN  WELFARE  and 
usefulness.  * * * WE  ARE  ORGAN- 
IZED FOR  MUTUAL  BENEFIT.  * * * 
This  cannot  be  successfully  accomplished 
by  a national  organization,  EXCEPT 
THROUGH  AUXILIARY  BODIES 
CLOSELY  IN  TOUCH  WITH  LOCAL 
LEGISLATURES.  It  is  probable  that 
measures  ini'iated  by  this  body  which  re- 
quire changes  in  the  laws  of  the  various 
states  would  be  much  more  likely  to 
come  to  fruition  if  committed  to  the  state 
associations  than  if  undertaken  by  the  as- 
sociation itself.  Already  these  associa- 
tions are  doing  splendid  work  and  achiev- 
ing excellent  results,  WHICH  COULD 
BE  GREATLY  EXTENDED  by  affiliat- 
ing them  more  closely  wfith  this,  organi- 
zation. 

“It  was  entirely  through  the  efforts  of 
the  Bankers’  Association  of  the  State  of 
Illinois  that  two  important  reforms  (?) 
in  the  laws  of  that  state  were  accom- 
plished last  winter,  the  effect  of  one  of 
which  at  least  wrill  be  appreciated  by  ev- 
ery BANKER  who  has  any  business  in 


IS 


that  state.  And  there  is  work  enough  to 
do.  It  is  conceded  by  every  intelligent 
man  that  usury  laws  on  the  statute 
books  of  nearly  every  state  are  relics  of 
barbarism  and  that  the  community 
would  be  greatly  benefited  (?)  were  they 
abolished  (?)***  The  remedy  for 
these  conditions  is  to  be  found  through 
proper  legislation  (by  “proper  legisla- 
tion” as  here  used  is  meant  that  legis- 
lation which  benefits  the  banker)  AND 
PROPER  LEGISLATION  CAN  BE 
HAD  if  it  is  sought  for  with  courage  and 
persistence.” 

Here  it  is  confessed  that  the  bankers  of 
the  United  States  are  organized  into  30 
different  bodies,  besides  the  national  and 
city  organizations,  and  that  they  are 
“organized  for  mutual  benefit,”  i.  e.,  “to 
increase  our  own  welfare  and  useful- 
ness.” This,  the  President  said,  “cannot 
be  successfully  accomplished  except 
through  bodies  closely  in  touch  with  lo- 
cal legislatures,”  and  for  the  securing  of 
national  laws,  a close  touch  with  the 
national  legislature.  In  twelve  states 
the  days  of  grace  on  promissory  notes 
have  been  abolished  through  the  efforts 
of  the  bankers.  What  do  our  people 
think  of  this?  And  the  bankers  here  tell 
us  that  they  are  working  diligently  for 
the  repeal  of  the  usury  laws.  What  do 
our  people  say  to  this?  But  this  is 
“small  game”  to  what  is  well  along  to- 
ward completion  and  which  I shall  ex- 
plain soon.  Do  you  think  there  is  any 
truth  in  the  statement  made  by  Thomas 
Jefferson  that  “the  banking  institutions 
are  more  dangerous  to  our  liberties  than 
standing  armies”? 

Comparative  Strength  of  Bankers,  ISIS 
1895  and  1898. 

A comparison  of  the  strength  of  the 
banking  interest  was  set  forth  by  the 
President  of  the  New  York  State  Bank- 
ers’ Association  in  an  address  to  the 
Bankers  Club  of  Chicago,  April  27th, 
1895.  The  subject  was  “Bankers  and  Leg- 
islation.” Mr.  Cornwell  said:  “If  in 

1875-6-7  and  8,  the  bankers  and  the  sound 
money  men  had  been  organized,  as  they 
are  organized  now,  and  had  spoken  out 
as  they  are  speaking  out  now;  had  start- 
ed out  on  a campaign  of  education  as 
they  are  starting  out  now,  THE  GREEN- 
BACK WOULD  LONG  AGO  HAVE 
BEEN  WIPED  OUT.” 

Since  the  above  was  uttered,  and  since 
the  foregoing  address  by  the  President 
of  the  American  Bankers’  Association 
was  put  forth,  the  work  of  the  Associa- 
tion has  been  greatly  extended.  The 
Bankers’  Magazine  in  its  August  Num- 
ber of  this  year  in  announcing  the  annual 
meeting  of  the  Bankers  said: 

“The  work  of  the  Association  HAS 
BEEN  GREATLY  EXTENDED  during 
the  past  three  or  four  years,  SINCE 
THE  ADOPTION  OF  A MORE  AG- 
GRESSIVE POLICY  IN  ADVANCING 
THE  INTERESTS  OF  THE  BANKING 
COMMUNITY.  * * * Th®.  day  will  not 
be  far  distant  when  there  will  be  very 
few  banking  institutions  in  the  United 
States  which  will  not  recognize  the  im- 
portance of  belonging  to  the  Association. 
ITS  POWER  TO  BENEFIT  THE 


BANKING  COMMUNITY  WILL  IN- 
CREASE with  the  positive  and  aggres- 
sive policy  it  is  now  pursuing.  Through 
experience  of  the  benefits  of  co-operation 
THE  BANKERS  WILL  LOSE  THAT 
FEAR  OF  EXCITING  POLITICAL  AT- 
TENTION that  for  many  years  made 
it  a prevailing  sentiment  in  the  Conven- 
tions to  refrain  from  making  the  most 
necessary  DEMANDS  ON  CONGRESS.” 
An  Aggressive  Policy. 

This  aggressive  policy  was  advocated 
by  the  President  of  the  New  York  State 
Bankers’  Association  in  a speech  before 
the  Bankers’  Club  of  Chicago,  April  27th, 
1895.  He  said : 

“What  ought  bankers  to  do  about  leg- 
islation? 

“This,  it  seems  to  me,  is  the  most  im- 
portant thing  for  us  to-night,  or  for  any 
body  of  bankers  in  this  country  to  con- 
sider at  once.  * * * 

“It  is  time  to  tear  off  disguise.  Inter- 
national bimetallism  is  a traitor  in  the 
camp.  It  is  a false  fraud.  * * * The 
fight  is  on;  this  is  War  for  Education 
and  ALL  DISGUISE  SHOULD  BE 
THROWN  OFF.  * * * IT  IS  TIME 
FOR  AGGRESSIVE  ACTION. 

“The  banker  has  a large  influence.  He 
is  a confidential  adviser  of  thousands  and 
thousands  of  business  men.  The  labor- 
ing element  comes  closely  in  contact  with 
these  business  men.”  Mr.  Cornwell  then 
declares  what  would  be  the  result,  name- 
ly, “a  new  sentiment  would  blaze  from 
one  end  of  the  land  to  the  other,  a senti- 
ment which  once  established  would  mean 
QUICK  LEGISLATION  in  the  right  di- 
rection and  a satisfactory  settlement  of 
the  currency  question  in  the  United 
States  for  all  time.”  And  in  conclusion 
he  declared:  “The  politician,  high  or  low, 
who  today  turns  from  the  straight  course 
of  sound  money  (bank  money)  and  the 
gold  standard,  STABS  DEAD  ONCE 
FOR  ALL  HIS  EVERY  CHANCE  FOR 
POLITICAL  SUCCESS,  ESPECIALLY 
IF  HE  WANTS  TO  BE  PRESIDENT.” 

I now  turn  and  point  out  the  Method 
whereby  the  bankers  “act  as  one  man” 
when  they  consider  that  their  Personal 
Interests  require  such  action: 

Bankers  Act  Through  an  Executive 
Council. 

The  following  is  a copy  of  a circular 
letter  sent  out  by  the  American  Bank- 
ers’ Association,  and  it  appears  in  the 
Congressional  Record  of  May  27th,  1896. 
Senator  Butler  of  North  Carolina  had 
it  read  by  the  Clerk  of  the  Senate  and 
thus  preserved  it  in  the  national  archives: 
“The  American  Bankers’  Association, 

2 Wall  Street  and  90-94  Broadway. 

New  York,  March  23,  1896. 
To  the  Bankers  of  the  United  States: 

At  a meeting  of  the  Executive  Council 
of  the  American  Bankers’  Association, 
held  in  this  city  on  March  11,  1896,  the 
following  declaration  was  made  by  unani- 
mous vote: 

“The  Executive  Council  of  the  Amer- 
ican Bankers’  Association  declare  un- 
equivocally in  favor  of  the  maintenance 
of  the  existing  gold  standard  of  value 
(prices)  and  recommend  to  all  bankers 


10 


and  to  the  customers  of  all  banks  THE 
EXERCISE  OF  ALL  OF  THEIR  INFLU- 
ENCE as  citizens  in  their  various  states 
TO  SELECT  DELEGATES  TO  THE  PO- 
LITICAL CONVENTIONS  OF  BOTH 
THE  GREAT  PARTIES  who  will  declare 
unequivocally  in  favor  of  the  main- 
tenance of  the  existing  gold  standard  of 
value  (prices). 

“Your  influence  is  earnestly  requested 
to  give  PRACTICAL  EFFECT  to  this 
action. 

Eugene  H.  Pullen,  President. 

James  R.  Branch,  Secretary. 

Joseph  C.  Hendrix, 

Chairman  Executive  Council.’' 
This  circular  letter,  in  addition  to  show- 
ing the  method  whereby  the  bankers’ 
trust  operates,  proves  also  that  the  bank- 
ers use  their  organization  TO  CONTROL 
BOTH  OF  THE  LEADING  POLITICAL 
PARTIES.  In  short,  the  combined  mon- 
eyed interests  are  organized  for  political 
work.  How  long  can  this  organization 
be  allowed  to  grow  and  the  Republic 
stand?  The  power  of  the  banking  and 
moneyed  class  is  greatly  extended  in  a 
bill  which  they  have  framed  and  which 
has  been  recommended  by  the  Banking 
Committee  of  the  House.  Its  essential 
points  are  as  follows: 

PART  IX. 

THE  PROPOSED  LAW  FOR  EX- 
TENDING THE  PRIVILEGES  OF 
THE  BANKING  TRUST  AND 
FURTHER  CONSOLIDATING  IT. 

The  McCleary  bill,  which  has  been  re- 
ported favorably  from  the  House  Com- 
mittee, and  now  stands  on  the  Calen- 
dar ready  for  passage,  has  in  it  the  fol- 
lowing provisions: 

(l)  CONTROL  OF  AVERAGE 
PRICES. 

The  Greenbacks  are  to  be  destroyed 
(section  13),  and  the  Government  is  not 
to  issue  any  more  paper  money,  direct. 
But  THE  GOVERNMENT  SHALL  FUR- 
NISH PAPER  MONEY  TO  THE  BANKS 
TO  ISSUE  WHEN  AND  HOW  THEY 
MAY  CHOOSE.  All  restriction  as  to  the 
withdrawal  of  the  paper  money  issued 
by  the  banks  is  to  be  repealed  (section 
44). 

This  enlargement  of  the  bankers’  con- 
trol of  the  volume  of  paper  money  makes 
more  complete  the  present  control  which 
they  exercise  through  the  volume  of  bank 
credits. 

Bankers’  False  Claim  Exposed. 

Mr.  McCleary,  in  the  Omaha  debate, 
was  asked  by  Hon.  George  Fred  Williams 
of  Massachusetts,  “who,  under  the  Mc- 
Cleary bill,  would  control  the  volume  of 
money?”  To  this  Mr.  McCleary  replied: 
“Under  our  system  the  Government  will 
continue  to  control  the  volume  of  money.” 
Mr.  Williams — “In  other  words,  is  it 
yoUr  position  that  the  government  shall 


continue  to  control  the  volume  of  metal- 
lic money  and  that  the  issue  of  paper 
money  shall  be  on  private  account?” 

Mr.  McCleary— “The  government  shall 
continue  to  allow  free  coinage  of  gold; 
the  coining  of  silver  will  be  on  govern- 
ment account.  The  issue  of  paper  is 
purely  a private  transaction.”  (Applause 
by  Bank  Money  advocates.) 

There  you  have  it.  THE  ISSUE  OF 
PAPER  MONEY  BY  THE  BANK  “IS 
PURELY  A PRIVATE  TRANSAC- 
TION,” says  the  advocate  of  the  bankers’ 
plan.  But  let  me  state  some  of  the  pro- 
visions of  the  proposed  law: 

The  paper  money  is  first  authorized 
by  the  voters— the  government— then 
printed  by  the  government  (section  15), 
and  “every  national  banking  association 
formed  or  existing  under  this  Act  SHALL 
TAKE  AND  RECEIVE  AT  PAR,  inA- 
TIONAL  BANK  NOTES,  OR  NATION- 
AL CURRENCY  NOTES  issued  by  any 
lawfully  organized  national  banking  asso- 
ciation.” This  is  “legal  tender”  and  the 
result  is  “money.”  The  volume  of  mon- 
ey is  prescribed  by  the  law,  i.  e.  given 
quantities  are  authorized,  and  anyone 
who,  without  authority,  publishes  or  cir- 
culates that  wh.ch  purports  to  be  a bank- 
note, is  guilty  of  a felony  and  liable  to 
a heavy  fine.  And  yet  the  bankers’  ad- 
vocate says  that  “The  issue  of  paper  is 
purely  a private  transaction”! 

Mr.  Williams  presented  to  Mr.  Mc- 
Cleary in  writing  twenty-six  questions, 
and  asked  that  he  answer  them  after  he 
had  considered  them  sufficiently.  Mr. 
McCleary  took  them  but  did  not  attempt 
to  answer  them— he  stood  mute.  To  have 
attempted  to  answer  the  questions  would 
have  exposed  the  whole  scheme,  except  as 
to  branch  banks.  The  proposed  law  had 
not  been  seen  by  Mr.  Williams,  nor  uy 
any  of  us  who  took  part  in  the  debate. 

Some  of  the  questions  propounded  are 
as  follows,  and  they  are  so  framed  that 
either  way  they  should  be  answered 
would  make  the  bankers’  plan  appear  un- 
satisfactory to  the  business  interests: 

Those  Troublesome  Questions. 

Question  No.  6 — Will  a sustained  export 
of  gold  be  an  indication  of  an  overissue 
of  bank  notes  and  the  necessity  of  bank- 
note contraction? 

Question  No.  7 — Will  the  issue  or  re- 
tirement of  bank  notes  affect  prices? 

Question  No.  8— A.  If  they  will  not  by 
what  methods  will  exports  of  goods  be 
stimulated  to  take  the  place  of  gold  ex- 
ports? 

Question  No.  8— B.  If  note  issues  will 
affect  prices  will  not  the  whole  general 
price  range  of  commodities  be  regulated 
by  the  banks? 

The  answer  to  these  questions  is  that 
the  banks  will  control  the  average  of 
prices  under  their  proposed  law,  and  con- 
trol them  more  thoroughly  than  at  pres- 
ent. ^Upon  this  point  the  following  ad- 
vice is  timely: 

Professor  Foxwell’s  Advice. 

Prof.  Foxwell  of  Cambridge  University, 
England,  and  a specialist  in  monetary 
history,  has  written  me  the  following  and 


20 


later  gave  permission  that  it  be  made 
public: 

“But  I warn  you  in  the  United  States, 
whatever  you  do,  not  to  give  fresh  power 
of  issue  to  the  banks.  I see  they  have 
been  asking  for  this  on  the  false  but  spe- 
cious plea  that  they  want  to  prevent  un- 
due restriction  of  the  currency.  What 
they  want,  and  what  all  the  gold  bugs 
want,  all  the  world  over,  is  so 
to  arrange  the  currency  that  they  may  be 
able  to  PULL  ALL  THE  WIRES,  AND 
MAKE  IT  SHRINK  OR  EXPAND,  BUT 
ESPECIALLY  SHRINK,  AS  MAY  SUIT 
THEIR  OPERATIONS  AND  INTER- 
ESTS.” 

(2)  Discretionary  Power  of  President. 

In  the  pending  bill  the  discretionary 
power  of  the  President  as  concerns  the 
maintenance  of  the  gold  standard  of  fall- 
ing prices  is  changed  into  a Fixed  Rule. 
He,  through  the  Secretary  of  the  Treas- 
ury, is  COMMANDED  TO  ISSUE  GOLD 
BONDS  as  often  and  to  the  extent  re- 
quired to  keep  prices  down  to  whe're  gold 
will  circulate;  (seotion  4). 

The  other  of  the  President’s  discretion- 
ary powers  over  the  average  of  prices  is 
left  in  operation,  and  to  a Board  of 
Comptrollers  of  the  Currency  is  given 
tremendous  discretionary  powers: 

(3)  Discretionary  Power  of  Comptrollers 

This  Board,  which  is  to  be  confirmed  by 
the  Senate,  have  a 12-year  term  of  office, 
and  not  removed  except  by  the  Senate 
and  upon  written  charges  (section  1),  is 
given  discretionary  power  to  retire  $346,  - 
000,000  of  paper  money,  and  discretionary 
power  also  to  re-issue  a like  amount  in 
exchange  for  gold  (section  20). 

(4)  Gold  Standard  of  Falling  Prices. 

The  power  given  to  the  Board  oi»  Comp- 
trollers to  issue  $346,000,000  of  paper  money 
for  gold,  at  their  discretion,  is  one  of  the 
means  whereby  prices  are  to  be  kept 
down  to  where  gold  will  circulate.  But 
the  gold  is  to  be  piled  up  and  let  out  just 
as  the  Wall  Street  appointees  may  deter- 
mine. Payment  in  gold  may  be  suspend- 
ed if  the  bankers  choose  to  overstep  the 
law. 

(5)  SUSPENSION  OF  SPECIE 
PAYMENTS. 

Provisions  of  the  Bill. 

The  banks  are  authorized  to  issue  in 
paper  money  80  per  cent  of  their  capital 
stock.  The  only  thing  to  keep  down  the 
volume  of  paper  money  to  where  gold  will 
circulate  alongside  it,  is  a limited  amount 
of  bank  capital  and  the  provision  in  t*ne 
law  that  50  per  cent  of  the  bank  reserves 
shall  be  in  gold,  and  that  5 per  cent  of 
the  paper  money  shall  be  represented'  by 
gold  in  the  United  States  treasury^ 

Bankers  Have  Broken  the  Law. 

But  so  long  as  the  bankers  elect  the  of- 
ficers in  control  of  the  government,  the 
bankers  will  experience  no  difficulty  in 
overstepping  the  law  if  they  choose  to 


do  so.  In  1836-7  they  suspended  specie 
payments  and  “NEARLY  ALL  THE 
BANKS  MADE  MONEY  OUT  OF  THE 
SUSPENSION  AND  PAID  LARGE  DIV- 
IDENDS DURING  THE  YEAR.”  This 
statement  is  taken  from  a “History  of 
American  Currency,”  written  by  one  of 
the  banks’  most  able  champions— Profes- 
sor Sumner  of  Yale  University. 

In  December,  1862,  the  banks  suspend- 
ed specie  payments,  and  made  great 
profits. 

The  Suspension  in  1893. 

In  1893,  during  the  course  of  the  panic, 
and  when  the  banks  had  suspended  not 
only  specie  payments,  but  the  payment 
of  paper  money  as  well,  “a  resolution 
was  introduced  in  the  Senate  of  the  Unit- 
ed States  calling  upon  the  Secretary  of 
the  Treasury  to  inform  the  Senate  wheth- 
er or  not  the  banks  of  New  York  were 
obeying  the  laws.  Senator  Hoar  of  Mas- 
sachusetts arose  in  his  seat  and  asked 
the  Senate  to  lay  that  resolution  on  the 
table,  stating  that  if  it  were  passed  by 
:he  Senate  it  would  be  construed  by  the 
country  to  mean  a command  to  the  Sec- 
retary of  the  Treasury  to  see  that  the 
New  York  banks  were  compelled  to  obey 
the  law,  in  which  case  the  terrors  of  the 
panic  which  was  then  raging  would  be 
augmented  and  general  ruin  to  the  busi- 
ness of  the  country  would  be  inevitable. 
The  resolution  was  consequently  laid  on 
the  table.”  (Editorial  in  Senator  Stew- 
art’s paper.) 

“A  Daw  Unto  Themselves.” 

Furthermore,  “there  is  great  danger,” 
says  Professor  C.  S.  Walker  of  Massa- 
chusetts Agricultural  College,  “that 
bankers,  with  a thousand  millions  of  dol- 
lars in  their  hands  of  the  people’s  money, 
to  expand  or  contract  as  they  see  fit,  will 
be  a law  unto  themselves:  that  with  this 
great  money  power  they  would  hire  law- 
yers to  instruct  the  judges  how  to  inter- 
pret the  law,  and  elect  congressmen  to 
pass  amendments  to  the  law  to  suit 
them.  This  great  danger  was  seen  in 
Jackson’s  time,  and  led  to  the  overthrow 
of  the  National  Bank.  The  attitude  of 
the  bankers  toward  the  government  in 
Lincoln’s  day  was  one  factor  which  led 
to  our  present  national  banking  system. 
The  dictatorial  power  of  the  bankers  of 
Europe  toward  the  control  of  peace  and 
war  and  national  policy  is  notorious.” 
(Bibliotheca  Sacra,  April,  1898.) 

(6)  88346,000,000  of  Bonds  or  Taxes. 

According  to  the  banker’s  plan  the  $346,- 
000,000  of  greenbacks  are  to  be  burned  af- 
ter they  have  been  exchanged  for  inter- 
est-bearing bonds,  or  for  capital  wrung 
from  the  people  by  taxation.  Three  hun- 
dred million  is  now  in  the  treasury  from 
bond  sales  and  taxation  and  the  war  tax 
is  being  kept  up. 

By  an  indirect  process  the  greenbacks 
are  exchanged  for  bonds  or  the  proceeds 
of  taxation.  It  is  this  way:  The  gov- 

ernment is  to  make  a new  paper  money 
and  pass  it  out  to  the  banks  $2  for  each 
dollar  of  greenbacks  handed  in,  and  then 
one-half  of  this  new  money  is  to  be  re- 
tired by  bonds  or  the  proceeds  of  taxa- 
tion. . 


21 


(t)  $800,000,000  of  Paper  Money  to  Be 

Given  to  the  Bankers. 

In  addition  to  the  $346,000,000  of  paper 
money  coined  for  the  banks  and  given 
them  free  of  charge,  practically, 
there  is  to  be  a replacement  of 
the  200  and  some  odd  million 

dollars  paper  money  which  the 

banks  now  have,  and  enough  more  to 
make  80  per  cent  of  the  capital  stock  of 
all  the  banking  capital  which  may  en- 
gage in  the  business— say  1,000  millions 
of  dollars,  except  as  redemption  in  gold 
may  keep  the  amount  down  so  that 
prices  will  be  low  enough  for  gold  to  cir- 
culate, and  keep  within  the  country  about 
$300,000,000  in  gold. 

THIS  $800,000,000  OF  PAPER  MONET, 
or  thereabouts,  IS  TO  BE  GIVEN  TO 
THE  BANKS  BY  THE  VOTERS,  AND 
THEN  THE  BANKS  ARE  TO  TURN 
ABOUT  AND  LOAN  IT  BACK  TO  THE 
PEOPLE  AT  FROM  5 TO  15  PER  CENT 
PER  ANNUM.  This  will  amount  to  at 
least  $40,000,000  each  year— enough  for  a 
National  University,  and  in  each  neigh- 
borhood a Pubi  c School  of  Economic  Po- 
litical and  Social  Science. 

(8)  Gold  Certificates  Withdrawn. 

A clause  in  the  proposed  law  repeals 
the  existing  provision  for  the  issuance  of 
gold  and  currency  certificates.  As  gold  is 
too  heavy  for  convenience,  and  people  are 
leaving  it  in  the  banks,  as  they  prefer 
paper  money,  the  result  of  the  repeal  of 
the  provision  for  gold  certificates  would 
be  that  all  the  gold  would  be  left  in  the 
banks  and  the  people  would  use  the  bank 
poper  money.  But  the  only  money 
which,  by  this  bill,  is  to  be  legal  tender 
between  individuals  is  gold,  and  it  fol- 
lows that  THE  PEOPLE  WOULD  BE 
WITHOUT  ANY  LEGAL  TENDER  AS 
BETWEEN  INDIVIDUALS,  AND  THE 
BANKS  WOULD  HOLD  IT  ALL,  AND 
WOULD  ALSO  HAVE  THE  POWER  TO 
CONTRACT,  WITHOUT  LIMIT,  THE 
VOLUME  OF  PAPER  MONEY  AS 
WELL  AS  A LIKE  POWER  TO  WITH- 
DRAW BANK  CREDITS.  To  those 
who  have  read  what  the  banks  did  in 
1881,  1893,  and  at  other  times,  the  mere 
statement  of  the  condition  which  would 
result  from  their  proposed  law  needs  no 
further  comment. 

(9)  Usury  Laws  to  Be  Evaded. 

Section  43  of  the  Bankers’  Proposed 
Law  exempts  them  from  the  State  laws 
against  usury.  It  will  be  remembered 
that  in  the  annual  address  by  the  Presi- 
dent of  the  American  Bankers’  Associa- 
tion, he  said:  “It  is  conceded  by  every 

intelligent  man  that  usury  laws  on  the 
statute  books  of  nearly  every  state,  are 
relics  of  barbarism,  and  that  the  com- 
munity would  be  greatly  benefited  were 
they  abolished.” 

In  the  proposed  banking  law  the  com- 
munity is  not  informed  of  the  great  ben- 
efit which  is  to  be  conferred  upon  it  by 
the  bankers  through  repealing  the  clause 
which  protects  the  people  from  the  bank- 
ers. The  proposed  law  simply  states  that 
the  banks,  in  addition  to  “discounting,” 


shall  have  power  to  “BUY  AND  SELL 
* * * promissory  notes,  drafts,  bills  of 
exchange  and  other  evidences  of  debt.” 

(lO)  Taxes  to  Be  Evaded. 

In  the  Bankers’  bill  there  is  a provision 
for  a very  slight  tax,  and  as  taxes  can- 
not be  put  upon  the  national  banks  by 
the  states  without  express  permission 
from  Congress,  it  follows  that  the  banks 
will  escape  taxation. 

This  will  not  be  an  innovation.  The 
bankers  have  repeatedly  secured  laws 
whereby  they  have  escaped  taxation;  for 
example,  at  the  opening  of  the  Civil  War 
when  the  law  was  passed  levying  a war 
tax,  the  bankers  were  specially  favored. 
Manufacturers  were  taxed  3 per  cent  of 
their  gross  sales  and  were  compelled  to 
pay  a license;  and  on  promissory  notes 
individuals  had  to  pay  a stamp  duty.  But 
THE  LAW  EXEMPTED  THE  BANK- 
ERS; bankers  were  allowed  to  keep  put- 
ting more  and  more  paper  money  into 
circulation,  thus  depriving  the  govern- 
ment of  just  that  much  revenue  and  this 
without  paying  any  tax,  and  they  were 
not  required  to  obtain  a license;  and  it 
was  only  the  net  proceeds  of  the  banks 
which  were  taxed,  thus  exempting  from 
taxation  whatever  salaries  the  bankers 
should  charge  up  to  themselves. 

This  is  set  forth  in  a speech  in  the 
Senate  by  John  Sherman,  Jan.  8,  1863,  and 
is  published  in  his  collected  speeches. 

(11)  United  States  Bonds  to  Be  Sold: 

Bank  Depositors’  Security  Lessened. 

After  four  years  the  United  States 
bonds  now  held  by  the  government  as 
security  for  the  paper  money  issued  to 
the  banks,  are  to  be  gradually  given  back 
to  the  bankers,  and  they  will  throw  them 
on  the  market.  To  the  extent  that  the 
proceeds  are  poorly  invested  there  will 
be  that  much  less  security  to  the  holders 
of  the  paper  money,  but  this  is  made  up 
to  them  by  a first  lien  on  the  assets  of 
the  bank.  It  diminishes,  however,  the  se- 
curity of  the  depositors. 

(12)  CONSOLIDATED  BANKING 
AND  MONEY  TRUST:  ONE 

BANK  WITH  10,000 
BRANCHES. 

Effect  of  “Branch.  Bank”  System. 

The  crowning  villainy  in  this  proposed 
banking  law  is  the  provision  for  Branch 
Banks.  It  is  an  innocent-looking  clause, 
but  when  we  consider  that  the  way  the 
Meat  Trust  operates  is  to  absorb  what- 
ever territory  it  desires  through  the  es- 
tablishment of  branches  which  drive  all 
others  out  of  the  business  through  under- 
selling for  a time,  it  becomes  clear  what 
this  “branch  bank”  clause  means.  It 
means  that  if  this  law  is  passed,  the  big 
speculators,  great  creditors  and  monopo- 
lists will  get  their  final  grip  on  the  pro- 
ducing and  trading  communities  of  the 
United  States  and  the  Republic  will  be  a 
thing  of  the  past.  Every  small  banker 
will  be  frozen  out  just  as  the  small  pro- 
prietors have  beep  frozen  out  in  meat 


22 


markets,  the  petroleum  business,  in  bak- 
eries, tanneries,  cordage,  distilling,  brew- 
ing, the  mining  of  hard  coal  and  iron  ore, 
sugar  refining,  the  manufacture  of  glu- 
cose, railroad  transportation,  the  tele- 
graph business,  the  telephone,  the  de- 
partment store  and  other  industries  too 
numerous  to  mention. 

Are  the  producing  and  trading  classes 
ready  and  willing  to  legislate  into  exist- 
ence a trust  which  shall  “back  up”  all 
the  other  trusts  which  may  secure  a rep- 
resentation in  the  Board  of  Directors  in 
Wall  Street,  and  which  shall  quickly  ex- 
tend “trust  methods”  to  all  the  fields 
not  yet  occupied? 

Admissions. 

That  there  is  in  the  proposed  law  a pro- 
vision for  the  consolidated  banking  and 
money  trust,  is  the  statement  of  the 
Chairman  of  the  committee  which  framed 
the  bill.  Chairman  Walker  in  a minority 
report  against  the  bill,  states  that  the  re- 
sult of  the  authorization  of  the  Branch 
Banks  will  be  “one  great  United  States 
Bank,  with  ten  thousand  branches.” 

And  the  majority  report  in  favor  of  the 
bill,  written  by  Mr.  McCleary,  admits 
that  Scotland  with  a branch  bank  system 
has  only  10  banks,  with  900  branches. 
And  the  “rolling  up”  of  trusts  in  Great 
Britain  is  only  just  beginning;  in  London 
the  morning  paper  of  October  4 states 
that  two  of  her  largest  banks  have  con- 
solidated. “Both  of  the  constituent 
banks,”  says  the  cable,  “had  numerous 
branches  and  sub-branches  in  London, 
as  well  as  in  several  of  the  important 
towns  and  cities  in  Great  Britain.  Early 
in  1897  the  London  and  Midland  bank  ab- 
sorbed the  Channel  Bank,  Limited,  and 
later  the  Heddersfield  Banking  Company 
was  taken  over.” 

In  Boston  nine  national  banks  have 
decided  recently  to  consolidate  in  a sin- 
gle institution.  The  citizens  don’t  like  it, 
but  that  “cuts  no  ice.” 

Furthermore,  Mr.  McCleary  in  his  re- 
port in  favor  of  the  proposed  law,  com- 
pares the  system  which  would  result 
from  branch  banks  to  “a  connected  sys- 
tem of  tanks  with  open  pipes  between. 
This,”  he  says,  “is  the  opposite  of  in- 
dependent banks,”  and  there  is  no  doubt 
but  that  he  is  correct. 

But  these  admissions  were  “slips.”  The 
argument  advanced  for  the  branch  banks 
is  as  follows: 

The  Fallacy  in  Bank  Trusts’  Argument. 

In  advocating  Branch  Banks  the  advo- 
cates of  the  system  claim  that  the  com- 
petition which  it  will  engender  will  lower 
the  rate  of  interest,  give  better  accom- 
modations. etc. 

The  fallacy  is  in  the  claim  that  it  will 
result  in  a continued  competition.  The 
branches  of  the  Meat  Trust  result  in 
competition  for  a time,  but  it  is 
an  unfair  competition  in  that  it  puts 
prices  so  low  that  the  resident  dealer 
gives  up,  or  is  ruined,  and  then  the  field 
is  in  the  hands  of  the  Trust.  An  era  of 
trusts  is  upon  us:  in  every  possible  direc- 
tion is  competition  being  shut  off.  In  the 
words  of  “The  Economist”  of  Chicago  in 


an  editorial  last  month:  “The  conclusion 
is  inevitable,  from  recent  events,  that 
the  idea  of  combination  is  a dominant 
one  among  the  best  thinkers  in  the  busi- 
ness field.  They  believe  that  the  trust 
idea  will  be  carried  out  in  future  years 
to  an  extent  compared  with  which  its 
present  application  will  seem  like  child’s 
play.” 

A Trust  of  Trusts. 

The  only  thing  needed  to  finish  the  trust 
process  and  thus  destroy  competition  in 
practically  all  lines  of  business,  is  a law 
permitting  the  establishment  of  branch 
banks.  It  would  soon  result  in  one  bank 
with  10,000  branches.  The  Board  of  Di- 
rectors with  their  office  in  Wall  Street, 
would  hold  full  sway  in  the  business 
world,  and  the  result  would  be  somewhat 
as  follows: 

Effect  of  a Consolidated  Banking  and 
Money  Trust. 

Every  business  of  any  magnitude  is  de- 
pendent upon  “bank  accommodations.” 
In  1896  the  refusal  of  bank  accommoda- 
tions to  the  Philadelphia  manufacturers 
who  wished  to  support  the  Bimetallic 
ticket  and  Government  Paper  Money  tick- 
et, resulted  in  their  “lying  down.”  It 
would  be  much  worse  if  there  were  but 
one  banking  institution  in  the  United 
States.  Then  the  trusts  now  in  existence 
and  represented  in  the  Directory  would 
experience  no  more  trouble  from  com- 
petitors, and  the  unoccupied  fields  would 
soon  be  “trusted.” 

Then  everyone  who  is  now  an  Inde- 
pendent Voter  would  become  a Serf,  for 
even  if  he  should  be  permitted  a vote,  his 
vote  would  not  be  counted  unless  it  suit- 
ed the  will  of  the  central  power.  As  to 
Employment,  the  blacklisting  of  railway 
employes  is  but  a precursor  of  what  will 
be  the  rule  in  a few  years  if  the  consoli- 
dated banking  trust  is  effected.  The  co- 
ercion of  railway  and  other  employes  in 
1896  will  be  but  a faint  taste  of  the  power 
which  will  be  applied  to  the  erstwhile 
sovereign  will— the  power  will  have  been 
transferred  from  the  citizens  to  the 
Board  of  Directors  in  Wall  Street. 

If  the  control  of  bank  credits  and  the 
volume  of  money  is  placed  in  the  hands 
of  the  rulers  of  the  existing  trusts,  the 
outcome  must  surely  be  in  the  direction 
pointed  out,  unless  a successful  revolu- 
tion shall  occur.  But  this  would  not  be 
probable,  for  with  its  amassed  wealth  and 
the  control  of  the  government,  there 
could  be  hired  plenty  of  men  to  fight  the 
battles,  while  the  wealthy  churches  and 
most  of  their  followers  wrould  be  on  the 
side  of  the  rich  party  in  power.  At  any 
rate,  it  is  best  to  prevent  consolidation 
of  the  banking  interests  and  not  give 
them  the  additional  power  which  when 
once  in  their  grasp  may  never  be  taken 
back. 

The  formation  of  this  mammoth  trust 
is  dependent  upon  legislation.  Will  the 
voters  choose  to  elect  Representatives 
and  Senators  who  shall  delegate  the 
power  asked  for,  or  will  the  voters  bestir 
themselves  and  elect  men  who  are 
pledger!  to  retain  the  greenbacks? 


23 


PART  X.  CONGRESSIONAL  CAM- 
PAIGN IS  A “STILL  HUNT:” 

CONSPIRACY  TO  FURTHER 
ENSLAVE  THE  PEOPLE. 

Proof. 

In  most  of  the  platforms  of  the  party- 
pledged  to  the  Bankers’  Scheme,  NO 
PLANKS  GIVE  A HINT  OF  THE 
PLAN,  and  it  is  hoped  that  it  will  be  kept 
out  of  the  campaign— that  the  people  will 
sleep  on  their  right  to  thwart  it  at  the 
ballot  box.  In' the  words  of  the  Bankers’ 
Magazine,  September,  1898: 

‘‘The  excitement  of  the  war  has  drawn 
the  minds . of  politicians  to  issues  more 
full  of  interest  than  the  financial  ques- 
tion. With  a period  before  the  meeting 
of  the  next  Congress  for  reflection,  it  is 
pot  beyond  hope  that  when  the  banking 
bill  comes  before  Congress  IT  WILL  GO 
THROUGH  WITHOUT  BEING  MADE 
A POLITICAL  ISSUE.” 

To  divert  attention,  the  platforms  de- 
clare for  Gold,  and  it  is  hoped  that  the 
reform  parties  will  accept  the  challenge 
and  argue  about  metallic  money  and 
overlook  the  scheme  to  retire  the  green- 
backs and  organize  a Trust  of  Trusts. 
A ‘‘still  hunt”  is  necessary,  for  “6,000,000 
REPUBLICAN  VOTERS,”  says  the  Re- 
publican Chairman  of  the  Banking  Com- 
mittee, “ARE  MORE  OR  LESS  OP- 
POSED TO  NATIONAL  BANKS,”  and 
for  the  greenback  the  people  have  “a  pe- 
culiar patriotic  instinct;  a greenback  is 
associated  in  their  minds  with  the  preser- 
vation of  the  Union.”  And  every  think- 
ing man  adds,  It  has  much  to  do  with 
the  preservation  of  the  liberties  of  to- 
day: with  the  bank  credit  in  the  control 
of  an  all-powerful  class,  the  situation  is 
very  bad,  but  when  there  is  added  to  this 
the  control  of  all  the  paper  money  and 
BY  A SINGLE  BOARD  OF  DIRECT- 
ORS, one’s  soul  shrinks  in  horror  at  the 
mere  contemplation  of  the  possibility  of 
such  an  outcome. 

TIi©  Power  of  the  Conspirators. 

The  Existing  Banking  Trust,  i.  e.,  the 
American  Bankers’  Association  with  its 
auxiliaries,  has  been  and  is  working  for 
the  retirement  of  the  greenbacks.  But  it 
is  certain  that  as  rapidly  as  the  individu- 
al members  find  out  about  the  branch 
banks,  and  what  it  means  to  themselves, 
they,  with  the  exception  of  a few  big 
bankers,  will  turn  in  and  fight  Wail 
Street. 

The  extent  to  which  the  Executive 
Committee  of  the  existing  bank  trust  and 
its  auxiliaries  is  organized  and  is  at  work, 
is  set  forth  in  the  following  notices: 

Conspirators  Are  Thoroughly  Organized 
and  at  Work  with  Millions  of 
Money. 

The  Times-Herald  of  Chicago,  noted  for 
the  “inside”  knowledge  which  it  has  of 
the  bankers’  plans  and  the  administra- 
tion doings,  in  an  editorial  in  September, 
said: 

“CAMPAIGN  CONTRIBUTIONS  In 
many  close  districts  are  being  made  and 
Will  continue  to  be  made  WITH  SOLE 


REFERENCE  TO  THE  CANDIDATE’S 
POSITION  ON  CURRENCY  REFORM. 

“These  contributions  will  be  supple- 
mented by  a great  amount  of  HARD 
WORK  AMONG  the  business  men  and 
REPRESENTATIVES  OF  SOUND 
MONEY  INSTITUTIONS. 

“The  sound  money  campaigners  are 
THOROUGHLY  ORGANIZED  and  do- 
ing EFFECTIVE  WORK  INDEPEND- 
ENT ENTIRELY  OF  THE  EFFORTS 
OF  THE  COMMITTEES  OF  THE  RE- 
PUBLICAN ORGANIZATION.  Currency 
reform  legislation  is  ‘on  the  carpet.’  IT 
IS  NEARER  THAN  MOST  PEOPLE 
IMAGINE.” 

Here  it  appears  that  Wall  Street  cannot 
trust  the  men  who  compose  the  present 
“republican  machine,”  especially  so  since 
the  Gold  Democracy  has  captured  it  and 
given  up  their  old  organization.  As  a 
consequence,  Wall  Street  has  its  own 
Election  Bureau  through  which  it  is  pour- 
ing its  millions  of  money. 

Corroborative  proof  of  the  statements 
in  the  editorial  of  the  Times-Herald  is  the 
following: 

“En  route  to  Omaha  for  the  purpose 
of  crossing  swords  with  representatives 
of  the  so-called  Indianapolis  Monetary 
Commission  in  a joint  debate,  Ex-Gover- 
nor Stone,  George  Fred  Williams  and 
Leon  C.  Bailey  of  Indiana  met  in  Chi- 
cago. 

“In  discussing  this  Indianapolis  “Mone- 
tary Commission,”  it  developed  that  IT 
HAS  AN  IMMENSE  ARMY  OF 
CLERKS,  AND  OCCUPIES  A WHOLE 
FLOOR  IN  ONE  OF  THE  FINEST  OF- 
FICE BUILDINGS  IN  INDIANAPO- 
LIS.” 

In  addition  to  the  above  organization 
there  is  the  National  Sound  Money 
League,  with  a committeeman  for  every 
state,  the  Sound  Currency  Committee  of 
the  Reform  Club  of  New  York,  and  sim- 
ilar organizations  in  Philadelphia,  Bos- 
ton and  other  cities,  and  besides  these  the 
Father  of  All— the  American  Bankers’ 
Association,  with  its  thirty  or  more  state 
organizations,  with  sub-organizations 
termed  Groups. 

Can  the  citizens  overcome  these  or- 
ganized forces? 

Yes,  if  discussion  is  challenged  and  the 
question  put  before  the  voters  in  other 
ways.  For 

Wall  Street  Is  Relying  Upon  Stealth  to 
Accomplish  That  Which  Cannot 
Be  Secured  if  Discussion  Is 
Had. 

Proof  of  this  is  the  omission  from  the 
political  platforms  of  all  direct  mention 
of  the  retirement  of  the  greenbacks  and 
the  bankers’  proposed  law.  And  there  is 
also  the  attempt  to  divert  attention  by 
bringing  in  the  question  of  gold  and  sil- 
ver when  it  cannot  be  acted  upon  untl 
1900. 

Further  proofs  that  stealth  is  being  re- 
lied upon  is  the  action  of  Congressman 
MeCleary  when  questioned  about  the  bill 
which  bears  his  name,  and  also  these 
further  facts: 

The  “sound  currency”  publications  are 
not  saying  a word  about  the  currency 
question  being  an  issue  in  the  campaign. 


24 


And  yet  it  is  the  question  which  is  at  is- 
sue. Not  a word  about  it  in  the  October 
number  of  “Sound  Money,”  the  “Monthly 
Bulletin  of  the  National  Sound  Money 
League,”  nor  is  there  in  any  of  the  week- 
ly sound  money  papers  which  I have 
looked  over,  a word  about  the  election 
and . the  currency  question,  except  in  the 
“Economist”  a four  liner,  stating  that  “the 
friends  of  sound  money  have  shown  con- 
siderable anxiety  in  the  past  week  or  two 
respecting  the  results  of  the  approaching 
elections.” 

Furthermore,  and  what  is  tremendously 
more  important,  is  the  fact  that  ALL  THE 
REPUBLICAN  DAILIES  which  have  been 
exposing  the  shams  of  Wall  Street  have 
been  silenced— aggregated  wealth  HAS  SE- 
CURED THEIR  SILENCE.  These  Repub- 
lican papers  are  not  stultifying  themselves 
by  advocating  the  establishment  of  Wall 
Street’s  scheme,  but  they  are  stultifying 
themselves  by  keeping  silent. 

And  there  is  this  further  proof  of 
stealth:  The  Republican  nominees  are  se- 
cretly pledged  to  vote  for  the  bankers’  bill 
— they  are  not  claiming  that  the  greenbacks 
are  an  evil  and  the  bankers’  bill  a bless- 
ing. They  may  vaguely  speak  of  “sound 
currency,”  but  they  don’t  dare  to  define 
what  they  mean.  This  is  not  honest  and 
is  not  in  keeping  with  American  tradi- 
tions. Think  of  Lincoln  or  Washington 
doing  such  a thing!  Every  stump  speak- 
er who  uses  the  term  “sound  currency” 
should  be  asked  to  define  it. 

I repeat  it:  This  still  hunt  of  Wall  and 
Lombard  Streets  can  be  overcome  by  our 
citizens  if  discussion  is  challenged  and 
the  question  is  put  before  the  voters  in 
other  ways.  To  do  this  THERE 
SHOULD  BE  NON-PARTISAN  CO-OP- 
ERATION BY  EVERY  GOOD  CITIZEN. 


Non-Partisan  Co-operation. 

There  are  not  ten  men  in  the  United 
States,  outside  of  a few  great  specula- 
tors and  creditors,  who  will  have  the 
hardihood  to  uphold  the  plan  for  placing 
IN  THE  HANDS  OF  A SINGLE  BOARD 
OF  DIRECTORS  COMPOSED  OF  PRI- 
VATE INDIVIDUALS,  THE  CONTROL 
OF  ALL  THE  BANKING  AND  MONEY 
INTERESTS  OF  THE  PEOPLE  OF 
THE  UNITED  STATES. 

Work  then  in  a non-partisan  way  for 
the  overthrow  of  those  candidates  who 
are  pledged  to  the  proposed  law  which 
is  to  result  in  a single  bank  with  ten 
thousand  branches  I say  “non-parti- 
san,” for  you  can  remain  in  the  Republi- 
can party  and  mark  off  from  your  ticket 
all  undesirable  candidates  . You  can  join 
with  that  old-time  Republican,  Chairman 
Walker,  in  scourging  from  the  party  all 
those  who  would  sell  their  country  and 


their  countrymen. 

EVERY  DEMOCRATIC  NOMINEE 
FOR  CONGRESS  IS  PLEDGED  TO  THE 
CHICAGO  PLATFORM.  WHICH  DE- 
CLARES THAT  THE  PAPER  MONEY 
SHOULD  BE  ISSUED  BY  THE  GOV- 
ERNMENT DIRECT  AND  NOT 
THROUGH  THE  BANKS. 

VOTE  FOR  THE  DEMOCRATIC  CAN- 
DIDATE FOR  CONGRESS  ON  ELEC- 
TION DAY  AND  SAVE  THE  COUNTRY 
FROM  THE  RULE  OF  THE  BANK 
TRUST. 


And  in  conclusion,  weigh  these  senti- 
ments expressed  by  the  greatest  of  Old 
Time  Republicans: 

Old  Time  Republican  Sentiments. 

The  Money  Question  “should  be  ap- 
proached in  no  spirit  of  partisan  bitter- 
ness. * * * Firmly  attached  to  one  po- 
litical party  myself,  firmly  believing  that 
parties  in  a free  government  are  as 
healthful  as  they  are  inevitable,  I still 
think  there  are  questions  about  which 
parties  should  agree  never  to  disagree; 
and  of  these  are  the  essential  nature 
and  value  of  the  circulating  medium.” 

This  was  uttered  by  James  G.  Blaine, 
February  10,  1876,  in  the  House  of  Rep- 
resentatives, in  a speech  in  which  he  de- 
fended the  greenback,  and  brought  down 
upon  himself  the  anger  of  the  bankers 
and  his  own  defeat  for  the  presidency. 

Washington  in  his  farewell  address 
gave  these  parting  words  to  his  country- 
men: 

“Let  me  warn  you  in  the  most  solemn 
manner  against  the  baneful  effects  of  the 
Spirit  of  Party. 

“This  spirit,  unfortunately,  is  insepar- 
able from  our  nature,  having  its  root  in 
the  strongest  passions  of  the  human 
mind.  It  exists  under  different  shapes  in 
all  governments,  more  or  less  stifled,  con- 
trolled or  repressed;  but  in  those  of  the 
Popular  form  it  is  seen  in  its  greatest 
rankness,  and  is  truly  their  worst 
enemy.  * * * The  common  and 

continual  mischiefs  of  the  spirit  of 
party  are  sufficient  to  make  it  the  inter- 
est and  duty  of  a wise  people  to  discour- 
age and  restrain  it.  * * * 

“It  opens  the  door  to  foreign 
influence  and  corruption,  which 
find  a facilitated  access  to  the  gov- 
ernment itself,  through  the  channels  of 
public  passions.  THUS  POLICY  AND 
THE  WILL  OF  ONE  COUNTRY  ARE 
SUBJECTED  TO  THE  POLICY  AND 
WILL  OF  ANOTHER.  * * * 

“There  being  constant  danger  of  ex- 
cess, the  effort  ought  to  be  by  force  of 
public  opinion,  to  mitigate  and  assuage 
it.” 

Abraham  Lincoln  uttered  this  undying 
sentiment: 

“It  is  for  us,  the  living,  to  be  dedicated 
to  the  unfinished  work,  that  government 
of  the  people,  by  the  people  and  for  the 
people  shall  not  perish  from  the  earth.” 

“God  give  us  Men.  A time  like  this  de- 
mands 

Men  who  have  honor— men  who  will  not 
lie; 

Men  who  can  stand  before  a demagogue 
And  damn  his  treacherous  flatteriugs 
without  winking.” 


d 


APPENDIX. 


Mr.  Walker,  of  Massachusetts,  from  the  Committee  on  Banking  and 
Currency,  submitted  the  following 

VIEWS  OF  THE  MINORITY. 

[To  accompany  H.  R.  10289.1 

The  undersigned  respectfully  dissents  from  the  views  of  the  signers 
of  the  favorable  report  on  bill  H.  ft.  10289,  7*  X >C  X 

I can  see  no  conceivable  relief  from  the  present  financial  and  banking 
conditions  of  the  country,  but  on  the  other  hand  the  certainty  that  it 
would  be  made  worse  by  enacting  any  general  bill  referred  to  the  com- 
mittee, excepting  the  Walker  bill  H.  R.  10333,  and  the  bills  before  the 
committee  ,h&ge  steadily  grown  worse,  culminating  in  theJElill-Fowler 


to  the  Committee  on  Banking  and 

^ 7 recognizes— muchTess_fearlessIyu and 

closely  follows— any  known  lYincipie^oF^conomics  or  any  recognized 


BRANCH  BANKS. 


The  Hill-Fowler  bill  authorization  of  branch  banks  is  very  bad 
economics  as  compared  with  encouraging  the  local  independent  bank, 
and  still  worse  statesmanship. 

It  finds  no  justification  in  the  policy  of  our  free  banking  system  or 
in  any  amendment  of  it  proposed  in  this  bill. 

It  is  unwise  to  permit  powerful  city  banks  to  establish  branches  in 
places  of  4,000  inhabitants  or  less.  The  putting  its  local  agent  in  a 
place  with  no  interest  in  it  other  than  the  money  he  can  make  out  of  it 
for  his  nonresident  employer,  means  that  no  independent  local  bank, 

managed  Jby  its__citizens^can  be  established  in  the  town,  and  if  one  is 
kStgereiT  m,gS£^o^5ES£^lsiness.  ~ ^ 

In  nine  cases  out  of  ten  local  banks  in  towns  , are  formed  by  public 
spirited  citizens  to  get  a fair  return  on  the  capital  they  put  in  the  bank, 
but  still  more  to  build  up  the  town,  by  assisting  other  citizens  to1 
capital  with  which  to  do  their  business. 

The  agent  of  the  city  bank  may  for  a time  loan  money,  in  “ good 
times,”  at  rates  to  drive  out  the  country  bank,  and  in  times  of  strin- 
gency the  funds  with  this  country  agent  will  be  sure  to  be  immediately 
returned  to  .support  the  citvjaank,  The  customers  of  the  country 
agency  will  be  sacrificed  to  the  necessities  of  the  paren^  bank. 


26 


Generally  there  are  two  stores  in  a town,  in  times  of  excitement 
each  is  the  headquarters  of  one  political  party.  The  agent  of  the  nawm? 
bank  knows  the  nolltinsjif  his  City  employer,  and  agmnjbe  bestowal of 
Ips  favo^l^i^iltjetp  be  influenced  by  hilCow  npoTiEcsr^''^ 
‘■‘TJoTourc^^  one  gre^t  “ Ui 


support  each,  and  thus  all  together  make  each  secure 
stringency  or  in  threatened  or  actual  panic,  as  in  the  Walker  bill. 


Mr.  McCleary,  from  the  Committee  on  Banking  and  Currency,  sub- 
mitted the  following 

* x x x x * xxxx^x 

Branch 

banking  may  be  compared,  in  the  fluidity  which  it  gives  to  capital,  to 
a connected  series  of  tanks  with  onen  nines  between,  while  the  possible 
borrowings  of  independent  banks  are  more  like  a series  of  tanks  whose 
pipes  require  to  be  opene<TwlIen  any  change  is  sought  in  the  level  of 
the  fluid.  ^ yc  s 

The  10  chartered  banks  of  Scotland  have 

more  than  900  branches, 

The  Hill-Fowler  bill  takes  no  cognizance  of  the  political  situation, 
and  needlessly  offends  the  gre^t  iqass  of -the  voters. 

Bryan's  vote,  0,500,000 ; McKinley,  7,000.000. 

Bryan  2,000,000  crazy  for  silver. 

2,000,000  frenzied  by  the  present  banking  and  currency  situ- 
ation and  care  nothing  for  free  coinage  of  silver. 
2,500,000  care  nothing  as  to  what  principles  the  Democratic 
platform  preaches  or  for  silver.  They  are  for 
the  “ machine.” 


6,500,000 

1.000. 000  Republicans  are  earnestly  for  the  unlimited  coin- 

age  of  silver,  but  are  more  for  what  the  Ehpub- 
^liHh^arJyrepresents  in  other  things  than  for 
silver. 

6.000. 000  voters,  are  more  or  less  suspicious  or  opposed  to 

of^e\seot  U nited  States  bonds  by  banks  io 
get  currency  notes  on. 

15.  The  margin  of  3J  per  cent  of  sound-money  voters  is  dangerously 
small.  We  must  win  from  those  among  the  people  who  want  a better 
currency  system  enough  votes  to  make  sound  money  safe,  and  must  also 
keep  the  1,000,000  Silver  Republican  voters  for  maintaining  parity. 


27 


16.  How  can  we  do  it? 

Not  by  telling  the  people  that  we  have  changed  the  paper  money  they 
will  hereafter  carry  in  their  pockets  into  bills  not  warantg&LMJhe 
ermnent  as  the  Will-Fowler  bilLdoes^  Not  by  giving  the  people  anything 
a^yless “Secure Than  theynow  have.  But  that  in  changing  the  paper 
money  and  leaving  out  the  bonds  we  have  kept  the  Government  guarantee* 

17.  Neither  can  we  tell  the  people  when  we  meet  them  face  to  face  in 
their  primary  meetings  that  we  have  given  them  two  kinds  of  paper 
money-one  they  can  never  lose  a dollar  on,  however  poor  the  bank 
issuing  it  may  be,  for  the  Government  is  behind  it;  and  another  that 

they  must  look  to  the  bank  only  to  pay  in  case  of  insolvency.  As  a 
party  measure,  such  a statement  would  be  worse  tha/n  to  do  nothing . 


PROPOSED  “BANK  TRUST”  LAW. 


(House  Bill 


CONSOLIDATED  BANK-CREDIT 
AND  MONEY  TRUST. 

Branch.  Banks. 

“Sec.  35.  That  it  shall  be  lawful  for  any 
national  banking  association  to  establish 
branches  under  such  rules  and  regulations 
as  may  be  prescribed  by  the  Comptrollers 
of  the  Currency.” 

Result  of  “Branch”  System. 

In  late  years  wherever  a large  corpor- 
ation can  place  a Branch  the  result  is  the 
underselling  of  the  smaller  institutions  un- 
til such  time  as  they  are  forced  to  go  out 
of  business.  The  proof  of  this  is  the  'Op- 
eration of  the  meat  and  all  other  trusts. 

In  addition  to  this  and  the  opinions  al- 
ready quoted  is  the  following: 

W.  C.  Cornwell,  ex-President  of  the  New 
York  State  Bankers’  Association,  says: 
“The  effect  of  the  adoption  of  Branch 
Banks  would  be  the  centralizing  of  bank- 
ing operations  in  a very  much  smaller 
number  of  head  institutions.” 

“This,”  says  the  Chicago  Tribune, 
“would  lead  to  a reduction  of  the  number 
of  employes  and  possibly  AROUSE  SOME 
PREJUDICE  WHICH  NOW  EXISTS 
AGAINST  TRUSTS.” 

All  the  Plans  Are  Laid. 

The  method  whereby  the  consolidation  is 
to  take  place  is  as  follows: 

“For  months  past  there  have  been  fur- 
tive allusions  in  the  New  York  press  to  the 
alleged  fact  that  the  arrangements  are  al- 
ready complete  to  organize  a National 
Bank  with  200  million  dollars  of  capital, 
with  J.  Pierreponi  Morgan  (who  already  con- 
trols more  than  50,000  miles  of  American 
railways)  as  its  head.”  (Ex-Congressman 
W.  H.  Claggett,  in  “Money,  Banks,  Panics 
and  Prosperity.”) 

A special  charter  for  a.  mammotij  bank 


No.  10289.) 


is  before  Congress,  and  is  made  a Special 
Order  for  the  tenth  day  after  the  opening 
of  the  December  session. 

All  the  “rails”  are  laid. 


VOTERS  TO  CREATE  MONEY  AND 
GIVE  IT  TO  THE  BANK  TRUST. 

A Legal  Tender. 

“Sec.  16.  That  national  reserve  notes  is- 
sued to  any  national  banking  association, 
as  defined  in  this  Act,  shall  be  A FULL 
LEGAL  TENDER  at  their  face  value  for 
all  debts,  public  and  private,  except  duties 
on  imports  and  interest  on  the  public  debt, 
and  shall  be  available  for  use  in  the  re- 
serves of  any  national  banking  association. 

“Every  national  banking  association 
formed  or  existing  under  this  Act  SHALL 
TAKE  AND  RECEIVE  AT  PAR  national 
bank  notes  or  national  currency  notes  is- 
sued by  any  lawfully  organized  national 
banking  association.” 

“Sec.  36.  That  so  much  of  section  fifty- 
one  hundred  and  eighty-two  of  the  Re- 
vised Statutes  of  the  United  States  as  pro- 
vides that  the  circulating  notes  of  national 
banking  associations  SHALL  BE  RE- 
CEIVED AT  PAR  ‘for  all  salaries  and 
other  debts  and  demands  owing  by  the 
United  States  to  individuals,  corporations, 
and  associations  within  the  United  States, 
except  interest  on  the  public  debt  and  in 
redemption  of  the  national  currency,’  be, 
and  the  same  is  HEREBY,  REPEALED.” 
Manufacture  of  the  Money — Coinage. 
“Sec.  15.  That  in  order  to  furnish  suitable 
notes  for  circulation  THE  COMPTROL- 
LERS OF  THE  CURRENCY  SHALL 
CAUSE  PLATES  AND  DIES  TO  BE  EN- 
GRAVED, in  the  best  manner  to  guard 
against  counterfeiting  and  fraudulent  alter- 
ations, and  shall  have  printed  therefr.om 
and  numbered  su^h  quantity  of  circulating 


28 

APPENDIX, 


notes  in  blank  of  the  denominations  of  ten 
dollars,  twenty  dollars,  fifty  dollars,  one 
hundred  dollars,  five  hundred  dollars,  one 
thousand  dollars  and  ten  thousand  dollars 
as  may  be  required  TO  SUPPLY  THE  AS- 
SOCIATIONS entitled  to  receive  the  same.” 

Retirement  of  Greenbacks— Bank  Trust 
to  be  Given  Two  for  One. 

“Sec.  13.  * * * That  any  national  bank- 

ing association  MAY  DEPOSIT  with  tht- 
Treasurer  of  the  United  States,  under  such 
regulations  as  the  Secretary  of  the  Treas- 
ury may  approve,  UNITED  STATES 
NOTES  to  an  amount  not  exceeding  its 
paid-up  and  unimpaired  capital,  AND 
SHALL  THEN  BE  ENTITLED  TO  RE- 
CEIVE IN  EXCHANGE  therefor  from  the 
Comptrollers  of  the  Currency  AN  EQUAL 
AMOUNT  OF  NATIONAL  RESERVE 
NOTES,  of  the  kind  and  denominations  de- 
scribed in  sections  twelve  and  fifteen  of 
this  Act.” 

And  the  bankers  are  also  given  an  equal 
amount  of  “currency  notes.”  The  clause  is 
as  follows: 

“Subdivision  C (Sec.  13).  That  any  na- 
tional banking  association,  having  deposited 
with  the  Treasurer  of  the  United  States 
United  States  notes  and  received  in  ex- 
change therefor  national  reserve  notes, 
shall  be  entitled  1o  receive  and  issue,  IN 
ADDITION  THERETO,  AN  AMOUNT  of 
national  currency  notes  EQUAL  TO  THE 
AMOUNT  OF  NATIONAL  RESERVE 
NOTES  RECEIVED  AS  AFORESAID: 
Provided,  however,  That  the  amount  of  na- 
tional currency  notes  thus  issued  shall  not 
exceed  the  amount  of  its  national  bank 
n.otes  outstanding:  And  provided  further. 

That  the  notes  thus  issued  shali  not  exceed 
forty  per  centum  of  the  paid-up  and  unim- 
paired capital  of  the  bank,  but  an  addi- 
tional amount  of  national  currency  notes 
may  be  issued  subject  to  the  tax  on  cir- 
culation provided  in  section  twenty-nine  of 
this  Act,  without  any  increase  of  the  cir- 
culation secured  by  United  States  bonds 
and  without  taking  out  any  additional  re- 
serve notes.” 

A Special  Privilege. 

In  addition  to  providing  a penalty  for 
Counterfeiting,  the  Revised  Statutes  of  the 
United  States  (1876)  declare  (Sec.  5188):  “It 

shall  not  be  lawful  to  design,  engrave,  print, 
or  in  any  manner  make  or  execute,  or  to 
utter,  issue,  distribute,  circulate,  or  use, 
any  business  or  professional  card,  notice, 
placard,  circular,  handbill,  or  advertise- 
ment, IN  THE  LIKENESS  OR  SIMILI- 
TUDE of  any  circulating  note  or  other  ob- 
ligation or  security  of  any  banking  asso- 
ciation organised  or  acting  under  the  laws 
of  the  United  Stales,  which  has  beeu  or 
may  be  issued  under  this  Title  or  any  act 
of  Congress,  ? * * JSyery  person  ^yhq 


violates  this  section  shall  be  liable  to  A 
PENALTY  OF  ONE  HUNDRED  DOL- 
LARS, recoverable  one-half  to  the  use  of 
the  informer.” 

And  yet  Congressman  McCleary,  in  de- 
fending the  Bankers’  Bill,  claimed  that  the 
issue  of  paper  morfey  by  the  banks  “IS 
PURELY  A PRIVATE  TRANSACTION.” 

Last  Twenty  Per  Cent  of  Capital  Can  be 
Represented  by  Paper  Money  Upon 
Paying  to  the  People  Six  Per 
Cent  Interest. 

“Sec.  30.  That  when  the  amount  of  the 
national  currency  notes  of  any  national 
banking  association  issued  under  this  Act 
shall,  together  with  its  national  bank  notes 
outstanding,  EXCEED  EIGHTY  PER 
CENTUM  of  its  capital,  every  such  national 
banking  association  shall  pay,  on  or  be- 
fore the  last  day  of  every  month,  to  the 
division  of  issue  and  redemption  a tax  im- 
posed at  the  rate  of  ONE-HALF  OF  ONE 
PER  CENTUM  PER  MONTH  upon  the 
average  daily  amount  of  said  national  cur- 
rency notes  in  circulation  in  excess  of 
eighty  per  centum  of  its  capital  stock,  and 
which  shall  not  have  been  returned  to  the 
Comptrollers  for  cancellation  or  covered  by 
an  equal  amount  of  gold  coin  deposited  with 
the  First  Comptroller  for  the  retirement 
of  such  notes.” 

People  to  Pay  Interest  on  tlie  Guaranty 
Fund. 

“Sec.  25.  That  the  Comptrollers  of  the 
Currency  be,  and  they  are  hereby,  author- 
ized, in  their  discretion,  to  cause  to  be  IN- 
VESTED IN  ANY  INTEREST-BEARING 
OBLIGATION  OF  THE  UNITED  STATES, 
at  a price  not  greater  than  a premium  of 
six  per  centum,  any  portion  of  the  guar- 
anty fund  hereinbefore  provided  for;  and 
such  securities  shall  be  held  and  disposed 
of  for  the  benefit  of  such  fund.” 

“Sec.  26.  That  all  interest  accruing  from 
the  investment  of  any  portion  of  the  afore- 
said guaranty  fund,  and  all  funds  received 
in  payment  of  the  taxes  on  circulation  pro- 
vided for  in  this  Act,  shall  be  held  in  the 
division  of  issue  and  redemption  in  gold 
coin  or  in  some  interest-bearing  obligation 
of  the  United  States,  and  SHALL  BE  SUP- 
PLEMENTARY TO  THE  GUARANTY 
FUND,  each  banking  association  BEING 
CREDITED  with  its  proper  share  thereof.” 

GOLD  BONDS  WITHOUT  LIMIT. 

“Sec.  4.  That  it  shall  be  the  duty  of  the 
Secretary  of  the  Treasury  to  MAINTAIN 
THE  GOLD  RESERVE  in  the  division  of 
issue  and  redemption  aforesaid  at  such 
sum  as  shall  secure  the  certain  and  immedi- 
ate redemption  of  all  notes  and  exchange 
of  all  silver  dollars  presented,  as  herein- 
after provided  for;  and  for  this  purpose 
he  njjijfj  fropi  time  to  time,  TRANSFER  TO 


29 

APPENDIX. 


THE  DIVISION  OF  ISSUE  AND  RE- 
DEMPTION any  funds  in  the  Treasury,  not 
otherwise  appropriated,  in  excess  of  an  ac- 
tual cash  balance  of  fifty  million  dollars; 
and  in  addition  thereto  he  is  hereby  au- 
thorized to  ISSUE  AND  SELL,  FOR  GOLD, 
whenever  it  is  IN  HIS  JUDGMENT  NEC- 
ESSARY to  the  ends  aforesaid,  and  for  no 
other  purpose,  certificates  of  indebtedness 
of  the  United  States,  bearing  interest  at  a 
rate  not  exceeding-  three  per  centum  per 
annum,  payable  in  gold  coin  at  the  end  of 
five  years,  but  redeemable  in  gold  coin  at 
the  option  of  the  United  States  after  one 
year;  and  the  proceeds  of  all  such  sales 
shall  be  paid  into  the  division  of  issue  and 
redemption  for  the  purpose  aforesaid.” 

TREMENDOUS  DISCRETIONARY 
POWER  OF  COMPTROLLERS. 

‘‘Sec.  20.  That  the  Comptrollers  of  the 
Currency  may  from  time  to  time,  under 
regulations  to  be  prescribed  by  them, 
WITHDRAW  FROM  CIRCULATION  na- 
tional reserve  notes  (amounting  to  about 
$346,000,000— Editor) ; but  such  withdrawals 
shall  be  first  from  those  banks  having  such 
reserve  notes  in  excess  of  forty  per  centum 
of  their  capital.  Thereafter  such  with- 
drawals shall  be  so  made  as  to  equitably 
adjust  the  respective  holdings  of  national 
reserve  notes  of  the  several  banks.  The 
national  reserve  notes  so  withdrawn  shall 
be  canceled  and  destroyed;  but  the  Comp- 
trollers of  the  Currency  are  hereby  AU- 
THORIZED TO  ISSUE,  IN  EXCHANGE 
FOR  GOLD  COIN,  to  national  banking  as- 
sociations, now  existing  or  hereafter  or- 
ganized, national  reserve  notes  TO  AN 
AMOUNT  NOT  EXCEEDING  IN  THE 
AGGREGATE  THE  AMOUNT  OF  NA- 
TIONAL RESERVE  NOTES  SO  CAN- 
CELED AND  DESTROYED  (about  $346,- 
000, 000— Ed  i tor).” 

UNITED  STATES  NOT  LIABLE. 

Provisions  of  the  Law. 

Under  the  proposed  law  the  bank  money 
is  not  to  be  secured  by  United  States  bonds 
after  eight  years.  The  security  is  as  fol- 
lows: 

“Sec.  14.  That  the  national  currency 
notes  shall  constitute  A PARAMOUNT 
LIEN  UPON  ALL  THE  ASSETS  of  the  as- 
sociation issuing  such  notes,  after  sufficient 
proceeds  thereof  shall  have  been  applied 
to  redeem  in  full  the  outstanding  national 
bank  notes.” 

“NOTHING  IN  THIS  ACT  contained 
SHALL  BE  CONSTRUED  TO  IMPOSE 
UPON  THE  UNITED  STATES  ANY 
LIABILITY  for  the  redemption  of  the  notes 
of  any  national  banking  association,  beyond 
the  proper  application  of  the  proceeds  of 
the  bonds  and  of  the  redemption  and  guar- 
anty funds  deposited  with  the  division  of 
issue  and  redemption  and  the  enforcement 


of  the  remedies  by  this  Act  provided.” 
(Sec.  28.) 

Old  Time  Republicanism. 

Compare  this  to  the  following  statement 
by  an  old-time  Republican:  “I  much  prefer 
the  credit  of  the  United  States,  based  as 
it  is  upon  ALL  THE  PRODUCTIONS  AND 
PROPERTY  OF  THE  UNITED  STATES, 
to  the  issues  of  any  corporation,  however 
well  guaranteed  and  managed.”  This  was 
said  by  John  Sherman  on  the  floor  of  the 
Senate,  February  13,  1862.  And  Chairman 
Walker  of  the  House  Committee,  a Repub- 
lican, also  says: 

“When  we  meet  the  people  face  to  face 
in  their  primary  meetings,  we  cannot  tell 
them  we  have  given  them  two  kinds  of 
paper  money — one  they  can  never  lose  a 
dollar  on,  however  poor  the  bank  issuing 
it  may  be,  for  the  Government  is  behind 
it;  and  another  that  they  must  look  to  the 
bank  only  to  pay  in  case  of  insolvency. 
As  a party  measure,  such  a statement 
WOULD  BE  WORSE  THAN  TO  DO 
NOTHING.” 

TO  ISSUE  AND  WITHDRAW  AT  WILL 
THE  PAPER  MONEY  AND 
BANK  CREDITS. 

Repeal  of  all  Restrictions. 

Section  44  of  the  law  proposed  by  Wall 
Street  repeals  the  present  restrictions  as  tq 
the  withdrawal  of  bank  money. 

This  leaves  the  bank  trust  to  WITH- 
DRAW AT  WILL,  AS  WELL  AS  ISSUE 
AT  WILL,  THE  PAPER  MONEY  AND 
ALSO  THE  BANK  CREDITS. 

Republican  and.  Other  Opinions. 

John  C.  Calhoun— “The  money  power  in 
the  hands  of  the  few-  corporate  banks  may 
RAISE  OR  SINK  PRICES  AT  PLEASURE, 
and  so  COMMAND  THE  WHOLE  PROP- 
ERTY OR  INDUSTRY  OF  THE  COUN- 
TRY.” 

Thomas  Jefferson— “Banking  institutions 
are  more  dangerous  to  our  liberties  than 
a standing  army.  The  issuing  of  money 
should  be  taken  from  them  and  RESTORED 
TO  THE  GOVERNMENT  and  the  people, 
wrhere  it  belongs.” 

John  A.  Logan— “I  see  the  producers  of 
the  Western  States  reduced  to  the  condi- 
tion of  serfs  WHEN  THE  BANKS  GET 
CONTROL  OF  THE  ENTIRE  VOLUME 
OF  MONEY.” 

James  A.  Garfield— “Whoever  controls  the 
volume  of  money  of  any  country  is  ABSO- 
LUTE MASTER  OF  ALL  ITS  INDUSTRY 
AND  COMMERCE.” 

Senator  James  Benton,  who  labored  with 
President  Jackson  to  overthrow  the  Na- 
tional Bank,  declared  in  1841:  “We  have 

driven  the  tigress  to  the  jungles,  but  I 
fear  that  some  day  she  will  return,  bring- 
ing her  whelps  with  her.” 


30 

APPENDIX 


She  did  return  in  1863,  and  the  result  was 
a law  for  A MULTITUDE  OF  BANKS  OF 
ISSUE. 

Of  these  Banks  of  Issue — “National 
Banks’’— Salmon  P.  Chase  said:  “My 

agency  in  procuring  the  passage  of  the 
National  Bank  Act  was  the  greatest  finan- 
cial mistake  of  my  life,  and  it  should  be 
repealed.” 

James  G.  Blaine— “The  money  lost  to  the 
people  under  the  old  system  of  State  banks 


Sentiment  of 


CHICAGO  TRIBUNE. 

Issuance  of  Money  Sliould  Not  be  by 
Private  Corporation. 

“The  ISSUANCE  OF  MONEY,  whether 
coined  or  printed,  IS  A FUNCTION  OF 
GOVERNMENT.  It  should  not  be  intrusted 
to  private  corporations.”— (Editorial  Nov. 
5,  ’97.) 

“It  was  not  the  intention  of  the  framers 
of  the  Constitution  that  banks  should  be 
allowed  to  COIN  PAPER  MONEY  FOR 
THE  PEOPLE.”— (Editorial  Nov.  18,  ’97.) 

Banks  Are  Too  Weak. 

“To  intrust  the  supplying  of  the  cur- 
rency by  the  banks  IS  DOUBLY  DANGER- 
OUS: they  are  hampered  at  a time  when 
their  customers  need  all  of  the  aid  that 
can  be  given,  and  when  there  is  an  unex- 
pected demand  for  tens  of  millions  of  gold 
they  will  be  unable  to  meet  it.  They  will 
not  be  able  to  sell  gold  bonds  as  the  gov- 
ernment can.”— (Editorial  Nov.  9,  1897.) 

“For  their  own  good  and  that  of  the 
country,  banks  should  keep  out  of  the  note- 
issuing business.  They  have  2,000  millions 
of  deposits  to  take  care  of.  That  ought 
to  give  them  abundant  employment.  Why 
do  they  wish  to  assume  a greater  responsi- 
bility?”—(Editorial  Nov.  28,  ’97.) 

Central  and  Western  Republicans  Against 
Wall  Street’s  Control  of  Average 
Prices  and  Business. 

“There  is  a sentiment  in  favor  of  the 
withdrawal  of  the  greenbacks  among  East- 
ern Republicans,  but  THOSE  OF  THE 
WEST  ARE  ALMOST  SOLIDLY  AGAINST 
IT.  That  is  unquestionably  the  case. 
* * * Currency  ‘reformers’  whose  plans 
contemplate  the  cancellation  of  the  green- 
backs will  find  that  they  are  preparing  to 
run  up  against  a stone  wall.”— (Editorial 
Nov.  28,  ’97.) 

“The  REPUBLICANS  OF  MICHIGAN, 
ILLINOIS  AND  IOWA  ARE  ALMOST 
UNANIMOUSLY  against  the  withdrawal 
from  circulation  of  the  government  paper 
money.  * * * The  amateur  currency  re- 


is a mere  bagatelle  compared  with  the  sys- 
tem of  National  banks  for  robbing  the  peo- 
ple.” 

Horace  Greely— “The  time  has  come  when 
the  people  must  have  a better  money  sys- 
tem than  that  of  national  banks.” 

Abraham  Lincoln — “Fluctuations  in  the 
value  of  currency  are  always  injurious,  and 
to  reduce  these  fluctuations  to  the  lowest 
possible  point  will  always  be  a leading  pur- 
pose in  wise  legislation.” 


up  to  Feb.,  1898. 


formers  * * * will  find  out  before  long 
that  their  policy  is  not  and  will  not  be  the 
policy  of  Congress.  The  latter  will  never 
favor  the  retirement  of  the  Greenbacks.”— 
(Editorial  Dec.  11,  1897.) 

“The  Secretary,  Mr.  Gage,  is  PREACH- 
ING TO  DEAF  EARS  WHEN  HE 
PREACHES  AGAINST  THE  GREEN- 
BACKS. The  people  do  not  believe  they 
are  a source  of  danger.  They  do  not  wish 
to  see  them  funded,  and  be  taxed  to  pay 
interest  on  bonds  which  will  have  to  be 
sold  to  retire  those  notes.”— (Feb.  14,  1898.) 

Cost  of  Greenbacks. 

Jan.  12,  1898,  there  is  an  editorial  in  the 
Tribune  headed:  “Redeeming  Greenbacks 

in  Gold  COSTS  THE  GOVERNMENT 
NOTHING.”  This  it  proves  by  showing 
that  the  funds  received  from  the  bonds 
sold  to  replenish  the  gold  reserve  were  used 
as  follows:  “One  hundred  and  eighty-six 

millions  in  stopping  the  deficit  gap  in  the 
revenues— the  current  income  being  that 
much  less  than  the  necessary  expenditures 
of  the  government,  and  the  balance  was 
on  hand  at  the  end  of  Cleveland’s  term.” 

THE  NEW  YORK  SUN. 

In  an  editorial,  November  27  of  last  year, 
the  Chicago  Tribune  said: 

“The  New  York  Sun,  THE  STRONGEST 
AND  MOST  INFLUENTIAL  REPUB- 
LICAN PAPER  in  Greater  New  York,  de- 
fines its  position  on  the  currency  question 
with  great  clearness,  and  in  a fashion  which 
will  SUIT  THE  REPUBLICANS  OF  THE 
WEST.  It  begins  by  stating  that  ‘the 
fundamental  issue’  is: 

“ ‘Shall  the  paper  money  of  the  nation  be 
issued  exclusively  by  the  banks,  or  shall  it 
be  issued  exclusively  by  the  government? 
At  present  both  agencies  are  in  operation, 
and  each  one  is  struggling  for  supremacy 
over  the  other.’ 

“One  of  the  rivals  must  surrender  to  the 
other,  and  leave  in  its  exclusive  possession 
the  function  of  supplying  what  paper  money 
the  people  need.  To  whose  hands  can  that 


Republican  Press 


31 

APPENDIX, 


function  be  most  safely  intrusted?  After 
quoting  Secretary  Gage’s  remark  about 
the  national  Treasury  awkwardly  per- 
forming an  office  entirely  foreign  to  its 
proper  function,’  tbe  Sun  observes: 

“ ‘In  the  same  spirit,  the  mugwump  New 
York  Times,  Friday  morning,  editorially 
denounced  the  issuing  of  currency  by  the 
government  exclusively  as  a scheme  of  in- 
flation destined  to  bankrupt  the  nation,  be- 
cause under  it  the  currency  WOULD  BE 
CONTROLLED  BY  CONGRESS,  and  not 
put  in  charge  of  the  banks.  The  Times, 
however,  omits  to>  mention  that  FOUR 
TIMES  WITHIN  TWELVE  YEARS- 


namely:  in  1884,  1890,  1893  and  1895— THE 
BANKS  of  this  city  DEFAULTED  ON 
THEIR  OBLIGATIONS  TO  THEIR  DE- 
POSITORS, and  that  these  depositors,  in 
order  to  get  currency  with  which  to  carry 
on  their  business,  HAD  TO  SELL  THEIR 
CHECKS  TO  WALL  STREET  BROKERS 
AT  A CONSIDERABLE  DISCOUNT.  To 
vest  in  SUCH  WEAK  INSTITUTIONS, 
and  in  less  responsible  banks  of  the  rural 
districts,  THE  EXCLUSIVE  FUNCTION 
OF  ISSUING  PAPER  MONEY  IS  AN 
ACT  OF  FOLLY  WHICH  OUR  PEOPLE 
WILL  NEVER  COMMIT.’  ” 


To-day  the  Republican  Press  is  Silenced. 


The  foregoing  utterances  were  put  forth  be- 
fore the  opening  of  the  war  with  Spain. 
Since  then  the  scheme  was  hatched  to  cap- 
ture a Congress  which  would  retire  the 
greenbacks  and  give  full  sway  to  the  great 
bankers.  IT  WAS  NECESSARY  that  the 
Great  Dailies  of  the  Republican  party  at 
least  SHOULD  CEASE  TO  FIGHT  THE 
SCHEME.  And  the  promoters  HAVE 
SUCCEEDED:  NOT  ONE  REPUBLICAN 

PAPER  CAN  I FIND  THAT  IS  FIGHT- 


ING THE  PROMOTERS  OF  THE  TRUST 
OF  TRUSTS. 

This  staggers  one.  We  are  tempted  to 
suspect  that  aggregated  wealth  is  going  to 
prove  too  strong  for  civilization  to  with- 
stand, or  else  that  it  is  hastening  its  own 
overthrow  by  its  rapid  enslavement  of  tbe 
producing  and  trading  classes.  Will  it  suc- 
ceed in  its  present  campaign  of  steal  b? 
Will  it  secure  enough  votes  to  legislate  into 
existence  the  Consolidated  Bank  Credit  and 
Money  Trust— the  Trusts  of  Trusts? 


ATTITUDE  OF  THE  PARTIES 


Republican  Congressmen  Whipped 
Into  Line. 

Last  December  a canvass  of  the  members 
of  the  House  was  made  as  to  the  proposal 
to  retire  the  greenbacks  and  it  was  found, 
says  the  Chicago  Tribune,  that  the  Re- 
publicans from  the  Central  and  Western 
States  were  still  opposed  to  the  policy. 

But  later  the  war  occupied  the  public 
mind,  and  the  Republican  Congressmen 
were  whipped  into  line  through  the  multi- 
tudious  forces  which  surround  them.  A 
canvass  of  the  House  last  July,  by  the 
Washington  Post,  showed  that  THE  RE- 
PUBLICAN MEMBERS  WERE  PRACTI- 
CALLY UNANIMOUS  FOR  THIS  LAW 
which  shall  yield  a “trust  of  trusts,”  in  ad- 
dition to  its  other  evil  features. 

Let  us  turn  to  the  opposition: 

Democratic  Congressmen  Stand  for  the 
People. 

In  the  daily  papers  of  Dec.  15,  1897,  the 
following  appears:  The  Democratic  mem- 


bers of  the  United  States  House  of  Repre- 
sentatives held  a caucus  and  resolved  that 
“It  is  the  sense  of  this  caucus  that  the 
Democrats  of  this  House  OUGHT  TO  RE- 
SIST ALL  EFFORTS,  DIRECT  OR  INDI- 
RECT, TO  RETIRE  THE  GREENBACKS 
AND  THE  TREASURY  NOTES. 

“That  we  are  opposed  to  and  WILL  RE- 
SIST ALL  ATTEMPTS  TO  EXTEND  THE 
PRIVILEGES  OF  NATIONAL  BANKS, 
OR  TO  REDUCE  THE  AMOUNT  OF 
THE  TAXES  THEY  NOW  PAY.” 

And  the  platform  of  the  Regenerated 
Democracy  is  equally  progressive: 

Platform  of  the  Purified.  Democracy. 

“Congress  alone  has  power  to  coin  and 
issue  money,  and  President  Jackson  de- 
clared that  this  power  cOq'd  not  be  delegated 
to  corporations  or  individuals.  We  there- 
fore denounce  the  issuance  of  notes,  in- 
tended to  circulate  as  money  by  National 
Banks  as  in  derogation  of  the  Constitution, 
and  we  demand  that  all  paper  which  is 


SJf 

APPENDIX, 


made  a legal  tender  for  public  and  private 
debts,  or  which  is  receivable  for  duties  to 
the  United  States,  SHALL  BE  ISSUED  BY 
THE  GOVERNMENT  OF  THE  UNITED 


> SHALL  BE  REDEEM 


STATES,  AND 
ABLE  IN  COIN. 

Furthermore,  in  nearly  all  the  States  the 
Democratic  party  stands  for  the  extensio 
of  the  Referendum  to  Statutorv  Law. 


Political  Outlook  October  8th. 


Dangerous  for  Producing  and  Trading 
Classes. 

“The  excitement  of  the  war  has  drawn 
the  minds  of  politicians  to  issues  more 
full  of  interest  than  the  financial  ques- 
tion. With  a period  before  the  meeting  of 
the  next  Congress  for  reflection,  it  is  not 
beyond  hope  that  when  the  banking  bill 
comes  before  Congress  IT  WILL  GO 
THROUGH  WITHOUT  BEING  MADE  A 
POLITICAL  ISSUE. ’’-The  Bankers’  Maga- 
zine, September,  1898. 

The  “Economist”  of  Chicago  for  Octo- 
ber 8th,  says: 

“A  week  or  two  ago  considerable  anxiety 
was  felt  respecting  the  outcome  of  the  fall 
elections  and  the  consequent  prospects  re- 
specting the  currency.  The  grounds  for  this 
anxiety  have  never  been  clear  to  people 
outside  of  practical  politics,  and  THERE 
IS  NOW  LESS  EVIDENCE  THAN  EVER 
OF  ANY  DANGER.  IT  APPEARS  CER- 
TAIN THAT  THE  ELECTION  WELL  RE- 
SULT IN  A TRIUMPH  FOR  THE  SOUND 
MONEY  PARTY,  and  that  the  senatorial 
elections  will  give  that  party  a gain  in, 
the  Upper  House,  so  that  there  will,  be  a 
CLEAR  WORKING  MAJORITY  IN  BOTH 
HOUSES.” 

Special  to  the  Times-Herald. 

“New  York,  October  8.— Republican  lend- 
ers of  national  prominence  held  a conference 
fraught  with  great  import  here  to-day.  The 
object  was  to  ascertain,  as  nearly  as  possi- 
ble by  close  figuring,  how  the  next  Con- 
gress will  stand  in  both  branches.  The 
conclusions  reached  were  that  these  results 
will  ensue  from  the  balloting  next  month: 

The  next  United  States  Senate  will  be 
REPUBLICAN  BY  FROM  SIX  TO  TEN 
VOTES. 

“The  next  House  of  Representatives 
WTLL  HAVE  A WORKING  REPUBLICAN 
MAJORITY,  but  not  so  large  a one  as  tho 
present  majority  of  fifty-one  votes. 

“As  a sequel,  the  Fifty-sixth  Congress  will 
stand  for  CURRENCY  -REFORM  LEGIS 
LATION. 

Figures  on  the  Senate. 

“There  are  thirty-four  hold-over  Repub- 
lican Senators,”  said  Chairman  Babcock. 
McComas  has  already  been  elected  in  Mary- 
land, and  a Republican  Legislature  to-day 
elected  a Republican  Senator  in  Oregon. 
In  order  to  control  the  Senate  the  Repub- 


licans must  elect  ten  of  the  twenty-six  Sen 
a tors  remaining  to  be  elected. 

“Mr.  Babcock  then  show'ed  the  followin' 
table  of  probabilities,  showing  who  are  tin 
Senators  whose  terms  expire  next  yearr  th 
states  placed  as  surely  Republican,  th' 
states  surely  Democratic,  and  those  consid 
ered  doubtful: 


Allen,  Nebraska  . . . 

Bate,  Tennessee  . . 
Burrows,  Michigan 
Cannon,  Utah  .... 
Clark,  Wyoming  . . 
Cockrell,  Missouri 
Davis,  Minnesota  . 
Faulkner,  West  Virginia 

Gray,  Delaware  

Hale,  Maine  

Hawley,  Connecticut 
Lodge,  Massachusetts 
Mantle,  Montana  .... 

Mills,  Texas  

Mitchell,  Wisconsin 
Murphy,  New  'York 
Pasco,  Florida  .#. . . . 
Proctor,  Vermont  .... 
Quay,  . Pennsylvania 
Rodch,  North  Dakota 
Smith,  New  Jersey 
Stewart,  Nevada  .... 
Sullivan,  Mississippi 
Turpie,  Indiana  .... 
Wilson,  Washington  . 
White,  California  . . . 

Total  


Rep.  Dem.  Doubt 


V 

■ 


Situation  October  13th. 

OCTOBER  13th  the  Indianapolis  Sentin 
said:  Not  a single  republican  paper  in  In 
diana  (or  in  the  United  States)  is  arguin; 
in  favor  of  the  retirement  of  the  greer 
backs.  Not  a single  republican  orator  i 
advocating  that  proposition  on  the  stunr 
And  yet  the  republican  party  is  commltte; 
to  that  measure  by  the  declarations  of  th 
President  and  the  Secretary  of  the  Treas 
ury  and  by  the  terms  of  the  Bill  reporter 
to  the  House  by  the  Committee  on  Ban" 
ing  and  Currency,  to  which,  according  t 
Mr.  H.  H.  Hanna,,  whose  truthfulness  n 
one  who  knows  him  will  question,  150  repu’ 
lican  members  of  Congress  stand  fully  com 
mitted.  Why  don't  the  republican  candi 
dates  and  speakers  who  are  now  before  th 
people  discuss  this  very  important  question 


Lithomount 
Pamphlet 
Binders 
Gaylord  Bros.  Inc. 

Makers 

Syracuse,  N.  Y. 


